European shares tumbled on Wednesday, as concerns over slowing economic growth and a downbeat forecast from Credit Suisse weighed on banks as investors prepared for European Central Bank (ECB) meetings on Thursday. and the Federal Reserve next week.
The pan-European STOXX 600 index closed down 0.57% at 440.37 points.
Banks fell 0.9% after Credit Suisse said it was likely to post a group-wide loss in the second quarter as volatility took a toll on its investment bank.
“What’s weighing on financial equities are concerns about slowing economic growth. Perhaps consumer confidence is falling, consumers may be less willing to borrow extra,” said Susannah Streeter, senior market analyst at Hargreaves Lansdown.
“In many ways, there was already a certain amount of weakness accounted for, but (the Credit Suisse announcement) certainly comes as a new wave of disappointment.”
Credit Suisse fell more than 7% in early trading before sharply reversing losses to close up 3.8%, with traders citing a report by Inside Paradeplatz saying that US-based State Street is planning a takeover bid for the struggling Swiss lender.
Meanwhile, money markets intensified their bets on the ECB’s rate hikes, pricing in 0.75 percentage point higher through September.
- In London, the Financial Times index dropped 0.08%, to 7,593.00 points;
- In Frankfurt, the DAX index fell 0.76% to 14,445.99 points;
- In Paris, the CAC-40 index lost 0.80% to 6,448.63 points;
- In Milan, the Ftse/Mib index had a devaluation of 0.53%, to 24,236.67 points;
- In Madrid, the Ibex-35 index registered an increase of 0.01%, to 8,842.70 points;
- In Lisbon, the PSI20 index depreciated by 0.23%, to 6,334.92 points.
Source: CNN Brasil
