EUROPE MARKETS: European Stocks Knocked To Lowest Since 2013 As Fear Selling Returns
February 11 2016 - 4:53AM
Dow Jones News
By Sara Sjolin, MarketWatch
Banks bear the brunt of the selloff again
European stocks were sold off sharply on Thursday, tracking a
wider stock-market exodus, as investors once again fretted over
global economic growth and the rout in oil prices.
The Stoxx Europe 600 index slumped 4% to 302.68, setting it on
track for its lowest close since Oct. 2013. A 4% drop would also
mark the worst trading day since August last year, when the
pan-European benchmark slid 5.3% on jitters over China.
"Nervous investors are once again heading for less riskier
assets as concerns over the strength of the global recovery
resurface and continued weakness in the price of oil," said Andy
McLevey, head of dealing at stockbroker Interactive Investor, in a
note.
Crude oil prices slid below $27 a barrel, down 3.1%.
"With no immediate end in sight, the volatility of late is set
to continue, which may provide opportunity for brave investors,
however, many may choose to sit on the sidelines until a little
calm is restored," McLevey added.
Thursday's slide came after a late-session selloff in the U.S
(http://www.marketwatch.com/story/dow-futures-up-100-points-as-markets-wait-for-yellen-to-speak-2016-02-10).
on Wednesday and after stocks in Hong Kong plunged on the return
(http://www.marketwatch.com/story/hong-kong-stocks-sputter-and-fizzle-as-market-reopens-2016-02-10)
of trading after the Lunar New Year break.
Banks led the European selloff again, with the Stoxx Europe 600
Banks Index down 6%, extending its year-to-date loss to 28%.
Italian banks were among worst hit: Shares of Unione di Banche
Italiane SpA (UBI.MI) sagged 17%, Mediobanca SpA (MB.MI) tumbled
9.6% and UniCredit SpA (UCG.MI) lost 7.9%. The sharp losses pulled
the FTSE MIB index down 4.9% to 15,886.44, putting it on track for
its lowest close since July 2013.
In France, Société Générale SA (GLE.FR) sank 12% after the
lender's earnings report missed forecasts
(http://www.marketwatch.com/story/societe-generale-profit-rises-20-on-sale-of-amundi-stake-2016-02-11).
The bank also raised its total provisions for litigation by 400
million euros to EUR1.7 billion.
France's CAC 40 index slumped 4.1% to 3,897.47, set for its
lowest close since July 2013.
In Germany, the DAX 30 index dropped 3.3% to 8,716.70, while the
U.K.'s FTSE 100 index fell 2.9% to 5,508.38
(http://www.marketwatch.com/story/ftse-100-dragged-down-by-miners-after-rio-tinto-swings-to-loss-2016-02-11).
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(END) Dow Jones Newswires
February 11, 2016 04:38 ET (09:38 GMT)
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