European stocks post worst week in five months on fears of a banking crisis

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

Rose

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