UPDATE 3-European shares slide as China Evergrande's troubles cast shadow

Reuters

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    * Fears of contagion sparked by China Evergrande crisis  
    * Mining stocks sink 3% as metal prices fall
    * Germany's DAX begins trading with 40 constituents
    * All eyes on major central bank meetings this week
    * Defensive utilities, healthcare stocks post smallest
declines

 (Adds comments, updates prices throughout)
    By Shreyashi Sanyal
    Sept 20 (Reuters) - European shares tumbled on Monday as
growing solvency worries about property group China Evergrande
spooked investors, in a dour start to a week packed with
meetings of major central banks.
    The pan-European STOXX 600 index  .STOXX  was down 1.7%,
with mining stocks  .SXPP  plunging 3.6% on a slide in commodity
prices.  O/R   MET/L 
    Asian equities ended sharply lower following a torrid
session for China Evergrande Group  3333.HK , the world's most
indebted property developer.  MKTS/GLOB 
    "More significant from the perspective of world markets is
the concerning situation with huge Chinese property developer
Evergrande, which appears to be teetering on the precipice with
concerns about contagion from the situation infecting the wider
economy in China. This is particularly bad news for miners,"
said Russ Mould, investment director at AJ Bell. 
    The benchmark European STOXX 600 has declined for three
straight weeks on worries about slowing global growth, soaring
inflation, persistently high COVID-19 cases and the spillover
from tighter regulation of Chinese firms.
    The U.S. Federal Reserve's policy meeting on Tuesday and
Wednesday is in focus as the central bank is expected to lay the
groundwork for a trimming of its massive pandemic stimulus.
Overall, 16 central banks are scheduled to hold meetings this
week, including in the UK, Norway, Switzerland and Japan.
 urn:newsml:reuters.com:*:nL1N2QJ0Y4 
    "Expectations are growing the U.S. central bank will start
laying out the groundwork for a tapering of bond purchases,
potentially tee-ing up for a November kick-off," said Fiona
Cincotta, senior financial markets analyst at City Index.     
    German shares  .GDAXI  fell 2.3% as data showed a
bigger-than-expected jump in producer prices last month.
 urn:newsml:reuters.com:*:nAPN022E00
    In its biggest ever overhaul, the blue-chip German index
began trading on Monday with an increase in the number of
constituents to 40 from 30.  urn:newsml:reuters.com:*:nL8N2QF2SW
    China-exposed luxury stocks such as LVMH  LVMH.PA , Kering
 PRTP.PA , Hermes  HRMS.PA  and Richemont  CFR.S  fell between
1.3% and 3.2%, extending sharp losses from last week.
    Meanwhile, Europe's fear gauge  .V2TX  jumped to a near
eight-month high. 
    Daimler AG  DAIGn.DE  shed 3.1% as a report cited the chief
of its truck division, the world's largest, as saying the unit
had seen the supply of crucial chips tighten further in recent
weeks.  urn:newsml:reuters.com:*:nL8N2QJ3X8
    Lufthansa  LHAG.DE  rose 5.5% after saying it expects to
raise 2.14 billion euros ($2.51 billion) to pay back part of a
state bailout that Germany's top airline received during the
coronavirus crisis.  urn:newsml:reuters.com:*:nL1N2QL0CV
    All major European subindexes were lower, with banks  .SX7P 
tumbling 4.3%, while utilities  .SX6P , food and beverage
 .SX3P  and real estate  .SX86P  posted the smallest declines. 

 (Reporting by Sagarika Jaisinghani and Shreyashi Sanyal in
Bengaluru; Editing by Arun Koyyur, Sriraj Kalluvila and Giles
Elgood)
 ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780; +91 961
144 3740; Twitter: https://twitter.com/s_shreyashi;))

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