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London/Johannesburg - European shares fell to their lowest close in more than two weeks on Monday amid persistent growth and eurozone debt concerns, with some banks also hit by a US lawsuit connected to the packaging of toxic mortgage debt.
Gold, once again attractive as a safe-haven, briefly touched $1900/oz.
The STOXX Europe 600 Banks index fell 5.5% and hit a 29-month low. Deutsche Bank fell 8.3% extending a decline from Friday.
“We don’t know what size the claims are - in the absence of certainty, people sell first and ask questions later,” said Ian King, head of international equities at Legal & General, which has $573.2bn under management.
US markets were closed for a public holiday.
The FTSEurofirst 300 index of top European shares fell 3.8% to end the session unofficially at 912.29 points, the lowest close since August 19.
Although equity valuations looked low, a combination of factors, including the eurozone debt crisis, meant investors were avoiding risk, King said. “People are pricing in the risk of European meltdown, rather than the likely outcome.”
London's FTSE 100 index of leading companies dropped 3.58%, in Paris, the CAC 40 fell 4.73% and in Frankfurt the DAX plunged 5.28% to a two-year low at 5,246.18 points.
Other European markets were also down heavily, with Milan tumbling 4.83%, Madrid 4.69% and Swiss stocks 4.04%.
Earlier Asian stocks closed down.
The rand weakened again to R7.12/$ from R7.06 at the close on Friday. The JSE fell just over 2% to close below the 30 000 level.
At the close, the JSE All Share [JSE:J203] index was 2.07% weaker, platinum counters slumped 3.21%, while resources gave up 2.72%, and industrials shed 1.98%. Financials were down 1.24% and banks were 1.11% off.
Gold, once again attractive as a safe-haven, briefly touched $1900/oz.
The STOXX Europe 600 Banks index fell 5.5% and hit a 29-month low. Deutsche Bank fell 8.3% extending a decline from Friday.
“We don’t know what size the claims are - in the absence of certainty, people sell first and ask questions later,” said Ian King, head of international equities at Legal & General, which has $573.2bn under management.
US markets were closed for a public holiday.
The FTSEurofirst 300 index of top European shares fell 3.8% to end the session unofficially at 912.29 points, the lowest close since August 19.
Although equity valuations looked low, a combination of factors, including the eurozone debt crisis, meant investors were avoiding risk, King said. “People are pricing in the risk of European meltdown, rather than the likely outcome.”
London's FTSE 100 index of leading companies dropped 3.58%, in Paris, the CAC 40 fell 4.73% and in Frankfurt the DAX plunged 5.28% to a two-year low at 5,246.18 points.
Other European markets were also down heavily, with Milan tumbling 4.83%, Madrid 4.69% and Swiss stocks 4.04%.
Earlier Asian stocks closed down.
The rand weakened again to R7.12/$ from R7.06 at the close on Friday. The JSE fell just over 2% to close below the 30 000 level.
At the close, the JSE All Share [JSE:J203] index was 2.07% weaker, platinum counters slumped 3.21%, while resources gave up 2.72%, and industrials shed 1.98%. Financials were down 1.24% and banks were 1.11% off.
