European shares close 3% lower after US warns of soaring coronavirus death toll; banks fall 6%

• The pan-European Stoxx 600 fell 3% by the close, with travel and leisure stocks leading losses on a 6.3% decline.
• Banks fell 5.8% after U.K. lenders announced they would scrap dividends in 2020 following pressure from the Bank of England.

European markets declined Wednesday as global market sentiment continued to take a pummeling amid the coronavirus outbreak.

European markets

The pan-European Stoxx 600 fell 3% by the close, with travel and leisure stocks leading losses on a 6.3% decline. Banks fell 5.8% after U.K. lenders announced they would scrap dividends in 2020 following pressure from the Bank of England.

Markets digested comments from the U.S. on Tuesday when President Donald Trump prepared Americans for a surge in coronavirus cases, saying the U.S. will face a "very, very painful two weeks." White House officials are projecting between 100,000 and 240,000 deaths in the U.S. with coronavirus fatalities peaking over the next two weeks.

Stocks on Wall Street also traded lower on Wednesday as the coronavirus pandemic continued to weigh on sentiment. 

On the data front, euro zone manufacturing PMI (purchasing managers' index) readings on Wednesday came in at a 92-month low of 44.5 in March, slightly above expectations but down from 49.2 in February.

Meanwhile, Asian stocks fell on Wednesday despite a private survey showing Chinese manufacturing activity had expanded slightly in March. The Caixin/Markit Manufacturing Purchasing Managers' index (PMI) for March came in at 50.1, above expectations of a reading of 45.5 by analysts in a Reuters poll. 

In terms of individual share price action in Europe, Swiss retailer Dufry fell 19% to the bottom of the European blue chip index, while cinema operator Cineworld shed more than 17%.

At the top of the Stoxx 600, Norway's SalMar climbed more than 10%.

- CNBC's Eustance Huang, Dan Mangan and Berkeley Lovelace Jr. contributed reporting to this story.