European stocks drop after US coronavirus cases surge

European stocks fell on Monday, on risk-aversion after a surge in coronavirus cases in the US, and new cases emerging in Germany, which spooked investors about a second wave of the deadly virus.

The Stoxx Europe 600 index fell 0.7% as of 11:25 GMT, after closing higher by 0.6% on Friday, thanks to oil prices rally and hopes of economic stimulus in Europe.

The Stoxx Europe index gained 4.25% during the last week, to post its fourth weekly gain in the five, on hopes about the European economy to achieve a quick recovery from the downturn caused by the coronavirus impact.

The pan European index opened lower today, with most European markets and sectors seeing red today.

The telecommunications sector saw the largest losses in Europe today, dropping by 1.5%, as most of the sectors' shares fell.

The US reported more than 30,000 new coronavirus cases on Saturday, the highest rate since May 1, according to Johns Hopkins University official data.

The World Health Organization also reported a record surge in cases on Sunday, with 183,000 new cases within 24 hours, to a total of 9 million cases around the world.

Infections also rose again in Germany, the Robert Koch Institute said that reproduction rate jumped on Sunday to 2.88% from 1.79% the previous day, and experts hope the rate will remain below 1% until the disease is contained.

S&P 500 futures fell 0.5%, after the index closed lower by 0.6% on Friday at Wall Street on profit-taking.

Back to Europe, the Euro Stoxx 50 index fell 0.8%, France's CAC 40 slipped 0.5%, Germany's DAX dipped 0.6%, and the UK's FTSE 100 fell 0.4%.