Picture used for illustrative purpose. File

European stock markets fell at the start of trading on Friday, extending the previous session's losses over fears of a second wave in coronavirus cases and the stalemate in Washington over a new stimulus package for the US economy.

London's benchmark FTSE 100 index dropped 0.5 percent to 6,152.82 points, after the UK government reimposed a quarantine for travellers from France and the Netherlands, prompting Paris to quickly announce a "reciprocal measure".

The Paris CAC 40 index retreated 0.6 percent to 5,010.03 and Frankfurt's DAX 30 shed 0.3 percent to 12,961.12. 

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"European markets turned south on Friday led by a decline in travel and leisure stocks after the UK added France to its 14-day quarantine list," noted Neil Wilson, chief market analyst at Markets.com.

"After a decent start to the week it looks like equity markets are finishing off rather meekly."

The UK government announced the change will kick in at 0300 GMT on Saturday, likely sparking a mass exodus among the estimated 160,000 British holidaymakers in France, after a rise in coronavirus cases there.

Equities were retreating also over fading hopes of a US stimulus deal being struck -- and ahead of key weekend trade talks between the United States and China.

Agence France-Presse