European stocks closed lower on Monday amid rising U.S.-China tensions around the source of the coronavirus outbreak.

The pan-European Stoxx 600 provisionally closed down 2.5%. Oil and gas stocks slipped almost 5% to lead losses as all sectors and major bourses slid into negative territory.

Activity in the euro zone's manufacturing sector contracted at a record rate in April with Covid-19 related measures impacting heavily on demand and production, a survey showed on Monday.

IHS Markit's Purchasing Managers' Index (PMI) for manufacturing fell to 33.4 in April from 44.5 in March, with anything under 50 representing a contraction.

Source : CNBC