Nervous investors sold shares because of uncertainty about the effects of the immigration curbs introduced by the new US president.
London, Frankfurt and Paris all lost around one percent on Monday as the travel ban increased concerns about the impact of his policies on global trade and the economy.
In Frankfurt, Atakan Sahin, a trader with ICF Bank said: “Aviation stocks are weaker as a result of the uncertainties. As we saw and read this weekend even the airline crews don’t know exactly how to respond to this new decree and it’s a bit the same for the markets. That is a bad sign and shares are feeling the pressure.”
Stock prices had risen on both sides of the Atlantic in recent weeks on enthusiasm about a pro-business Trump agenda.
But traders said the financial markets don’t like this current focus on immigration reform and travel restrictions.
The dollar was down against the safe haven currency the Japanese yen and airline shares suffered.
Among the losers in Europe were International Airlines Group – which owns British Airways, Aer Lingus, Iberia and Vueling – as well as Air France KLM, Lufthansa, Ryanair and easyJet.
In the US, the likes of American, Delta and United Continental took big hits; and even planemakers Boeing and Airbus were lower on Monday. (Euronews)