Turkish turmoil, Germany lockdown extension hit European stocks Reuters via biedex.markets

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© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt

(Reuters) – A slump in and worries about prolonged lockdowns in Germany pushed European stocks lower on Monday, with banks and travel shares taking the biggest hit.

The pan-European fell 0.5% by 0806 GMT, down for the second straight session after hitting a one-year peak last week.

The global mood soured as the Turkish lira dropped to a record low after President Tayyip Erdogan replaced a hawkish central bank governor with a critic of high interest rates over the weekend.

Euro zone banks exposed to the country such as Spain’s BBVA (MC:), Italy’s UniCredit, France’s BNP Paribas (OTC:), and Dutch bank ING fell between 1.6% and 5.2%.

Travel stocks also dropped as a draft proposal seen by Reuters showed Germany was set to extend a lockdown to contain the COVID-19 pandemic into its fifth month.

The German was down 0.5%, while 40 fell 0.9% and UK’s dropped 0.8%.

British home improvement retailer Kingfisher (LON:) rose 3.6% after it reported a 44% jump in full-year profit, driven by the popularity of do-it-yourself (DIY) projects.