European Markets Plunge Amid Goldman Sachs Scandal and Volcanic Ash Cloud

European markets declined on Monday, following the news of fraud charges against Goldman Sachs and the ongoing disruption caused by Iceland's erupting volcano. Bank shares fell, with Goldman Sachs experiencing its largest drop ever, while airline stocks declined as Northern European airports remained closed due to the volcanic ash cloud. The pan-European Stoxx 600 index lost 0.6%, with the U.K.'s FTSE 100 ending down 0.3%. European bank shares suffered, with Deutsche Bank and UBS declining by 2.6% and 2.2%, respectively. However, Citigroup gained 3.18% in recent trading after its first-quarter profit more than doubled from a year earlier.

Key Takeaways:

• European markets ended lower on Monday, with the pan-European Stoxx 600 index losing 0.6% at 266.13.
• Bank shares suffered amid concerns of wider fallout from the Goldman Sachs scandal, with Deutsche Bank and UBS declining by 2.6% and 2.2%, respectively.
• Airline stocks fell as Northern European airports remained closed for a fifth straight day due to the volcanic ash cloud, with British Airways, Deutsche Lufthansa, and Air France-KLM experiencing declines of 1.4%, 2.6%, and 2.9%, respectively.
• Citigroup gained 3.18% in recent trading after its first-quarter profit more than doubled from a year earlier.
• The SEC's suit against Goldman Sachs rattled investors, who were already nervous about the cash-strapped Greek economy and the ongoing travel disruption caused by Iceland's erupting volcano.
• Investors flocked to safety amid concerns over whether the SEC's scrutiny would extend to other lenders and whether the lawsuit could result in stricter regulations as part of the financial system overhaul making its way through the Senate this week.

Statistics:

• The pan-European Stoxx 600 index lost 0.6% at 266.13.
• The U.K.'s FTSE 100 ended down 0.3% at 5727.91.
• Deutsche Bank lost 2.6%, while UBS declined 2.2%.
• Citigroup gained 3.18% in recent trading.
• British Airways shares slid 1.4%, while Deutsche Lufthansa shares slipped 2.6%, and Air France-KLM fell 2.9%.
• The Dow Jones Industrials Average was recently down 0.03%.
• Japan's Nikkei 225 and South Korea's Kospi Composite ended down 1.7%, while Hong Kong's Hang Seng Index fell 2.1%.
• China's Shanghai Composite Index slumped 4.8% after Beijing announced additional measures to curb property speculation.

Sources:

• Dow Jones Commodities News Select via Comtex, Apr 19, 2010
• Sarah Turner, Dow Jones Newswires, 04-19-10 1312ET
• Copyright (c) 2010 Dow Jones & Company, Inc.