Bank stocks in the UK and Europe faltered as new safety concerns swept through financial markets.
Shares in German Deutsche Bank and Swiss group UBS have plunged as investors fear that the industry’s worst problems since the 2008 financial crisis have yet to surface.
The banking market as a whole also declined, with the banking stock index in Europe falling 6 percent. Nervousness among banks also caused the euro to fall.
Shares in Deutsche Bank, one of Europe’s largest and most important, fell 11 percent at one point during trading to their lowest level in months.
“Deutsche Bank has been in the spotlight for a while, as has Credit Suisse,” said Stuart Cole, chief macro economist at Equiti Capital.
“It has gone through several reorganizations and leadership changes to get it back on solid footing, but so far none of those efforts seem to have worked.”
UBS, which is rushing to complete its takeover deal with Credit Suisse, also saw its shares drop 6 percent in trading.
Deutsche Bank, which has been under pressure all week since the collapse of Credit Suisse and smaller US banks, has been hardest hit by the latest setback, which German rivals Commerzbank, France’s Societe Generale and Spain’s Banco Sabadell have also had to put up with.
The fall came as European Central Bank President Christine Lagarde was briefing European Union leaders at a meeting in Brussels on the ECB’s response to the banking crisis.
This story will be updated.…
Source: I News
I am Moises Cosgrove and I work for a news website as an author. I specialize in the market section, writing stories about the latest developments in the world of finance and economics. My articles are read by people from all walks of life, from investors to analysts, to everyday citizens looking for insight into how news will affect their finances.