European finance sectors feels market downturn
(9 February 2016 – Europe) European stock markets started the week poorly as investors cashed out of banking shares, with the finance sector hit hard.
After a quiet session across Asia owing to the Chinese New Year, European markets plunged. Markets across the continent ended the day down with losses of around three percent.
Milan fell 4.7 percent and Greek stocks dropped 7.9 percent to a 25-year low. Meanwhile Frankfurt's DAX even went below 9,000 points for the first time since October 2014.
Banks’ disappointing earnings have dampened investor sentiment, especially given the prospect of continued low interest rates in many countries.
Across Europe, shares in Deutsche Bank plunged 13.7 percent and Commerzbank slumped 6.6 percent. French giant BNP Paribas lost 5.5 percent and HSBC fell by 4.2 per cent.
Meanwhile in Switzerland, Credit Suisse boss Tidjane Thiam told a German newspaper that he has requested the bank’s board to make a "significant" cut in his bonus following disappointing results last week and the announcement of 4,000 job cuts.
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