European shares drop as second virus wave unsettles investors

European shares dropped on Monday as a surge in new coronavirus cases in Germany and elsewhere unsettled investors’ hopes for a faster economic recovery.

The pan-European STOXX 600 index fell 1%, with the losses led by oil and gas.SXEP, travel and leisure.SXTP, and bank stocks.SX7P.

The World Health Organization posted a record rise in global coronavirus cases on Sunday. Meanwhile, Germany’s COVID-19 reproduction rate surged to 2.88, showing that infections were increasing above the rate needed to control the virus.

Scandal-hit Wirecard fell another 43.9% on Monday. This came after the stock exchange withdrew its earnings forecast when a quarter of its profit totaling 1.9 billion euros was unaccounted for.

Lufthansa lost 6.7% amid a showdown between the German government and the airline’s largest shareholder over a 9-billion-euro bailout.