March 09, 2020: Europe's major stock markets slumped Monday at the open, as crashing oil prices saw investors dump global equities, which have already been slammed by heightened fears over the deadly coronavirus.

Stocks tanked after oil nosedived 30 percent at one stage, sparked by top exporter Saudi Arabia slashing prices after a bust-up with Russia over crude production.

The dizzying oil drop sent investors fleeing for safety alongside mounting fears over the global economic impact of the worsening coronavirus, which has seen Italy lock down a swathe of its north.

“This will be remembered as Black Monday,” said analyst Neil Wilson at trading site Markets.com.

“If you thought it couldn't get any worse than the last fortnight, think again. The blood really is running in the streets, it's utter carnage out there.” In early deals, London's benchmark FTSE 100 shares index tanked 8.6 percent at 5,908.52 points, compared with Friday's closing level.

In the eurozone, Frankfurt's DAX 30 shed 7.1 percent to 10,722.11 points and the Paris CAC 40 dropped 7.6 percent to 4,751.18.

In Milan, the FTSE MIB was down almost 7.0 percent at 19,352.08.

London's benchmark Brent oil contract was down 20.5 percent at $35.98 per barrel, while New York's WTI crude stood at $31.69, down 23.3 percent.

“Most damagingly, Saudi Arabia and Russia have shown a complete unwillingness to work together in this time of crisis,” said Spreadex analyst Connor Campbell.

“Unable to reach an agreement regarding an oil production cut, the Saudis slashed crude prices by their most in at least 20 years while preparing to ramp up its output, setting the scene for an all-out price war with Putin's superpower.” Oil majors bore the brunt of a fierce wave of selling as dealers dumped stocks exposed to tanking oil prices, while other commodities firms nursed heavy losses.

BP shares dived 18.69 percent to 321.25 pence while Royal Dutch Shell saw its 'A' stock slide 21.44 percent to 1,256.40 pence.

Among miners, Anglo American shed 14.5 percent to 1,437.80 pence, BHP Billiton sank 14.6 percent to 1,138.20 pence and Glencore lost 13.2 percent to 151.06.

In Paris, energy major Total saw shares dive 14.32 percent to 31.86 euros, while steel giant Arcelor Mittal stock shed 16.2 percent to 9.69 euros.

AFP/APP

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