Europe Stocks Slide as Carmakers Head for Biggest Drop Since '11
- Volkswagen tumbles as fallout from test scandal widens
- Commodity producers retreat as prices from coal to zinc drop
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Volkswagen AG’s unfolding emission-test scandal and worries about global growth weighed on investor sentiment in Europe, sending the region’s stocks lower.
Volkswagen tumbled 20 percent, dragging a measure of carmakers to its biggest two-day slump since 2008, after saying irregularities on diesel-output readings extend to 11 million vehicles around the world, and it has set aside 6.5 billion euros ($7.3 billion) in an initial tally of the costs. Shares have lost 35 percent since its admission of cheating on U.S. air-pollution tests. PSA Peugeot Citroen SA fell 8.8 percent after France’s finance minister called for a European investigation of the industry.