European stocks plunge on oil price tumble, Italy lockdown

European shares slumped across the board on Monday, taking the benchmark STOXX 600 into the bear market territory as a lockdown in northern Italy due to the coronavirus outbreak and a 30% plunge in oil prices amplified fears of a global recession.

The pan-European STOXX 600 fell 6.1% by 0807 GMT, entering the bear market - commonly defined as a 20% drop from all-time highs. London's commodity-heavy FTSE 100 was down 8.0%, with shares of oil majors BP and Royal Dutch Shell down more than 20%. The top decliner on the STOXX 600 was Tullow Oil, with an eye-popping 57% drop.

Europe's oil & gas index tumbled 7.3%, with crude prices in a free-fall after Saudi Arabia started a price war by slashing its official selling price and setting plans for a dramatic increase in crude production next month. Italy became the frontline of the crisis in Europe after the government ordered a virtual lockdown across much of its wealthy north, including the financial capital Milan, in a drastic new attempt to try to contain the outbreak.