European stocks were sharply lower on Friday, as ongoing concerts over the European banking sector weighed and as investors remained cautious ahead of a report on euro zone inflation due later in the session.
During European morning trade, the EURO STOXX 50 plummeted 2.01 per cent, France’s CAC 40 tumbled 2.03 per cent, while Germany’s DAX 30 lost 1.77 per cent.
European equities were rattled by ongoing concerns over the health of Deutsche Bank (DE:DBKGn) following reports trading clients had withdrawn excess cash and positions held in the largest German lender due to recent sanctions Financial stocks were broadly lower, as French lenders BNP Paribas (PA:BNPP) and Societe Generale (PA:SOGN) plunged 3.38 per cent and 3.94 per cent, while Germany’s Deutsche Bank and Commerzbank (DE:CBKG) lost 0.40 and 4.38 per cent.
Commerzbank said on Thursday that it will be cutting thousands of jobs. Among peripheral lenders, Italy’s Intesa Sanpaolo (MI:ISP) and Unicredit (MI:CRDI) dove 3.44 per cent and 4.27 per cent respectively, while Spanish banks BBVA (MC:BBVA) and Banco Santander (MC:SAN) plummeted 3.97 per cent and 4.05 per cent.
Elsewhere, France’s AXA SA (PA:AXAF) lost 3.07 per cent and Germany’s Allianz (DE:ALVG) tumbled 1.58 per cent as the two companies continued talks regarding a deal with Standard Chartered (LON:STAN) that would allow the insurance firms to sell their products through the bank’s Asian branches.
Telefonica (MC:TEF) added to losses, as shares plunged 4.29 per cent after saying it had cancelled the planned listing of its Telxius business due to weak investor demand. In London, FTSE 100 lost 1.19 per cent, as U.K. lenders tracked their European counterparts sharply lower.
Shares in HSBC Holdings (LON:HSBA) tumbled 1.59 per cent and Lloyds Banking (LON:LLOY) plummeted 2.32 per cent, while the Royal Bank of Scotland (LON:RBS) and Barclays (LON:BARC) sank 3.08 per cent and 3.36 per cent respectively.
In the mining sector, stocks were mixed on the commodity-heavy index. Rio Tinto (LON:RIO) declined 1.77 per cent and Glencore (LON:GLEN) plunged 2.59 per cent, while rivals Randgold Resources (LON:RRS) and Fresnillo (LON:FRES) gained 0.82 per cent and 1.05 per cent respectively.
Meanwhile, Burberry Group PLC (LON:BRBY) rose 0.22 per cent after analysts at RBC raised their price target on the stock. In the U.S., equity markets pointed to a lower open.
The Dow Jones Industrial Average futures pointed to a 0.44 per cent decline, S&P 500 futures showed a 0.44 per cent loss, while the Nasdaq 100 futures indicated a 0.45 per cent drop.
Source:© Copyright Guardian Online
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