UKX FTSE 100 Index

By Victor Reklaitis, MarketWatch

Bayer battered after court ruling over Roundup

European stocks closed with losses Monday, as Turkey's perilous financial condition weighed on sentiment.

Bayer AG shares were another big drag, after a U.S. court ruling against the company's Monsanto unit.

What are markets doing?

The Stoxx Europe 600 dropped 0.3% to finish at 384.91, after losing 1.1% on Friday (http://www.marketwatch.com/story/european-stocks-tumble-as-ecb-raises-questions-about-turkey-contagion-2018-08-10) as worries about Turkey took a toll.

The pan-European gauge has lost 1.1% for the year to date.

Germany's DAX 30 shed 0.5% to close at 12,358.74, while France's CAC 40 gave up less than 0.1% to end at 5,412.32. The U.K.'s FTSE 100 fell 0.3% to 7,642.45.

The euro changed hands at $1.1394, down from $1.1412 late Friday in New York.

What is driving the market?

European stocks have been selling off on fears about potential contagion from Turkey's problems, especially in the banking sector.

The Turkish central bank pledged (http://www.marketwatch.com/story/turkeys-central-bank-fails-to-soothe-investors-2018-08-13) to provide "all the liquidity the banks need" in a statement Monday. It also said banks would be able to borrow foreign-exchange deposits from the central bank at one-month and one-week maturities. Analysts said Turkey's reluctance to raise interest rates stood out.

Meanwhile, shares in Bayer (BAYN.XE) dived 10% in the day's biggest loss among the Stoxx Europe 600 components. A jury ordered the German chemical company's Monsanto business to pay $289 million in a landmark lawsuit (http://www.marketwatch.com/story/bayers-monsanto-hit-by-289-million-verdict-2018-08-13) over whether exposure to two of its powerful weed killers -- Ranger Pro and Roundup -- caused cancer.

What are strategists saying?

"Clearly Turkey's situation is another global risk," said Konstantinos Anthis, head of research at ADS Securities, in a note.

"Even though the country itself has limited ties with the rest of the word, a spreading of the crisis to Europe via its banks' exposure is a major concern."

See:Turkish lira hits fresh low as Erdogan's currency crisis echoes through markets (http://www.marketwatch.com/story/turkish-lira-hits-fresh-low-as-erdogans-currency-crisis-echoes-through-stock-markets-2018-08-12)

Other stock movers

Shares in GAM Holding AG (GAM.EB) fell 3.7% after the Swiss money manager on Friday said it would liquidate $7.3 billion of its funds (https://www.wsj.com/articles/gam-to-liquidate-7-3-billion-of-funds-after-traders-suspension-1533924082?mod=mktw) following the suspension of a top bond fund manager.

Shares in Air France-KLM (AF.FR) dropped 4.1% after the head of a key pilots union reportedly said there would be further strikes if management doesn't restart pay negotiations once a new CEO is found.

Don't miss:Why Air France-KLM's stock may not be ready to fly high (http://www.marketwatch.com/story/this-european-airlines-stock-is-rallying-after-a-rough-half-year-heres-how-to-play-it-2018-07-20)

On the upside, shares in United Internet AG (UTDI.XE) tacked on 0.2% after the German internet services provider posted higher-than-expected earnings and backed its outlook.

Read:3 reasons the selloff in Turkey's lira matters for markets all over the world (http://www.marketwatch.com/story/3-reasons-why-the-selloff-in-turkeys-lira-matters-to-global-markets-2018-08-10)

(END) Dow Jones Newswires

August 13, 2018 12:12 ET (16:12 GMT)

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