European stocks slide on concerns over new virus wave

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March 23 (Reuters) - European stocks retreated from a one-year peak on Tuesday, as a new wave of coronavirus infection and fresh lockdown in Germany raised fears of a slow economic recovery from the pandemic shock.

The pan-European STOXX 600 index fell 0.7% after a new round of sanctions aimed at China hit Asian markets.

The German DAX dropped 0.8% after Chancellor Angela Merkel announced on Tuesday the extension of lockdown until April 18 and called on citizens to stay at home for five days over the Easter holidays.

The tally of new COVID-19 cases in France also accelerated despite the start of a third lockdown, while Austria postponed the reopening of cafe and restaurants.

Travel & leisure fell again, with British Airways-owner IAG, easyJet and travel company TUI down between 2% and 3%.

British Health minister Matt Hancock said fines of 5,000 pounds ($6,900) will be introduced for people from England who try to travel abroad before the end of June.

Swedish truckmaker Volvo slumped 7.1% after it warned that a shortage of semiconductors would have a substantial impact on production in the second quarter. (Reporting by Sruthi Shankar in Bengaluru; Editing by Arun Koyyur)