Global growth concerns hammer down Europe stocks drop for 7th day
By Staff Writer
European stocks continued to fall for a seventh session following the continued concerns about the global economy growth. The lower oil prices, disappointing quarterly results and sluggish global markets are further impacting the European trading. The cost insuring debt against default in Europe reached highest level since 2013.
The European investors and foreign funds discouraged over the no signs of easing down in global growth concerns. The Stoxx Europe 600 index dropped 0.2 percent to 313.59 in London market. The index gave up early gains of 0.7 percent. Global stocks were trading lower in volatile session amid concerns over oil prices and quarterly numbers.
The strength of the US and Chinese economies is also impacting the European stocks. The Stoxx Europe 600 index is trading at 13.8 times the estimated earnings and about 21 percent lower than its peak during April 2015. The Italian banks Banca Popolare di Milano Scarl and UniCredit Spa were among those suffered significantly, while a measure of lenders reached its lowest since 2012, as reported by Daily News.
All the financial markets across the Europe were bleeding with no index could escape from the bloodbath. The Stoxx 600 fell to 16-month low. Greece's ASE index dropped to lowest since 1990. The European stocks fell 14 percent as a guage trading equity swings jumped 51 percent indicating higher volatility in the market.
Swedbank AB, biggest mortgage bank in Sweden, fell 4.2 percent following the news that it fired its CEO after seven years. European stocks were reeling under pressure as mining firms and banks are worst hit in the financial markets. European stocks were moving further down as investors turned pessimistic and concerned over global growth prospects, according to CNBC.
The Wall Street continued to move southwards as technology stock led the fall. The S&P 500 index fell over two percent. Bank of America, JPMorgan and Citigroup were major drag on the index. The FTSEurofirst 300 index of top regional shares reached to its lowest since October 2013.
The Stoxx Europe 600 banking index fell 5.6 percent indicating highest sectoral loss among other indices. The concerns about the profitability of the banking sector and capital requirements made banking stocks much weaker in the current sluggish markets. The cost of insuring the senior debt in the Europe against default rose to its highest since late 2013, as reported by Reuters.
Deutsche Bank AG eroded early gains of 5.4 percent. The bank has reiterated that it has enough cash to repay the debts. The German bank fell 9.5 percent after tech CreditSights Inc's analysts said that it was struggling to pay coupons on riskiest bonds. CreditSights Inc further made a forecast on the bank that operating results may be disappointing.