European stocks tumble as Evergrande debt worries put pressure on markets

European stock markets closed lower overnight as investors worried about the bankruptcy of Chinese real estate giant Evergrande. And investors delayed trading before the Federal Reserve (Fed) and Bank of England meetings this week.

The Stoxx Europe 600 Index closed at 454.12, down 7.72, or -1.67%.

The French CAC-40 index closed at 6,455.81, down 114.38, or -1.74%, the German stock market DAX closed at 15,132.06, down 358.11, or -2.31%, and the FTSE 100 London stock market closed at 6,903.91, down 59.73, or -0.86%

European stocks tumbled as Asian equities plunged sharply on concerns about China’s default. Evergrande Group, the world’s most indebted real estate developer

European stock markets are already under pressure from concerns about a slowdown in the global economy, rising inflation, rising numbers of COVID-19 cases and tightening regulatory measures against Chinese firms.

Investors focused on the Fed’s monetary policy meetings on Tuesday and Wednesday. The central banks of 16 countries will also hold meetings this week, including Britain, Norway, Switzerland and Japan.

Mining stocks fell 3.6 percent on lower commodity prices.

China-based luxury stocks such as Louis Vuitton, Kering, Hermes and Richmont fell 1.3-3.2 percent.

Daimler AG shares fell 3.1 percent on reports that the company’s chip supply has tightened in recent weeks.