European stocks posted early gains on Friday posting their steepest weekly drop in five months after supportive measures by regulators in the US and Europe failed to allay fears of a global banking crisis.
The pan-European STOXX 600 index closed down 1.21% at 436.31 points, weighed down by banking, insurance and financial services stocks.
The banking index lost 2.6%, with HSBC, BNP Paribas, Allianz SE and UBS Group all down between 1% and 3%.
A $30 billion bailout by major US banks to First Republic Bank, less than a day after Credit Suisse secured a large emergency loan from the Swiss central bank of up to $54 billion, helped the index sector gaining as much as 2.2% at the start of the day.
Later in the day, SVB Financial filed for Chapter 11 bankruptcy to seek buyers for its assets.
The STOXX 600 has lost nearly 4% this week while bank shares tumbled 11.5% over the same period after tumbling US and European lenders left investors panicking over the health of the financial sector.
Shares of Credit Suisse also reversed early gains and fell 8% after a 19% jump in the previous session.
In LONDON, the Financial Times index fell by 1.01%, to 7,335.40 points.
In FRANKFURT, the DAX index fell by 1.33% to 14,768.20 points.
In PARIS, the CAC-40 index lost 1.43% to 6,925.40 points.
In MILAN, the Ftse/Mib index lost 1.64% to 25,494.54 points.
In MADRID, the Ibex-35 index fell by 1.92%, to 8,719.30 points.
In LISBON, the PSI20 index lost 2.42% to 5,724.12 points.
Source: Terra
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