A decline in bank shares dragged European stocks down for a third day, with the Stoxx Europe 600 Index extending a one-year low.
The
benchmark equity measure dropped 0.4 percent, closing at its lowest
level since December 2014. The Stoxx 600 climbed as much as 1.2 percent
after the market opened and later fell 0.8 percent. Lenders completed
their biggest three-day drop since August, tumbling 7.5 percent in the
period.
A
third week of declines left the Stoxx 600 more than 20 percent below
its April record, meeting the common definition of a bear market. On
Monday, trading in its shares was about 18 percent greater than the
30-day average.
Worries
over global growth and an oil rout took over sentiment, sending
European equities back to where they were before the region’s central
bank announced it would start its quantitative-easing program. In 2016
alone, the Stoxx 600 has lost 10 percent. The VStoxx Index, a measure
tracking volatility in euro-area shares, reached its highest level since
September last week.
The
declines took the Stoxx 600’s valuation below 14 times estimated
earnings for the first time since last January, while the multiple for
the Standard & Poor’s 500 Index fell to 15.3. Futures on the gauge
slipped 0.1 percent on Monday, with U.S. markets closed for a holiday.
Source : Bloomberg
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