European shares finished the day one percent lower after Chinese equities slumped during the previous session and commodities fell on concerns that investors had got ahead of the economic realities.
Shanghai’s big drop had a psychological knock-on effect on international sentiment, however region wide volumes were low as the London markets were closed for a UK national holiday. Financial shares pulled back after their recent rally, including Commerzbank, BNP Paribas, Natixis, Credit Suisse, Societe Generale, KBC and Deutsche Bank. Commodities companies were hit by sliding oil and metal prices. German carmakers including BMW, Volkswagen, Porsche and Daimler fell on a report that the study shows the country will face a major sales slump after the government scrappage programme ends.