European stocks
tumbled for a seventh day and a gauge of banks slid to its lowest level
since 2012 as the global equity rout sparked by investor worries over
the economic recovery showed no signs of abating.
Greece’s Eurobank
Ergasias SA led lenders lower, sliding 12 percent, as the cost of
insuring financial debt rose amid concern over whether banks are strong
enough to cope with a downturn. Credit Suisse Group AG lost 8.4 percent
after the Swiss National Bank said it could reduce its negative deposit
rate further. Deutsche Bank AG reversed gains, falling 4.3 percent to
its lowest price since at least 1992 even as it reassured investors that
it has enough cash to pay its debts.
The Stoxx Europe 600
Index dropped 1.6 percent to 309.39 at the close of trading, its lowest
level since October 2013, sending it into so-called “oversold”
territory. The volume of shares changing hands was 52 percent higher
than the 30-day average. A gauge tracking stock swings rose to its
highest in three weeks and has jumped 53 percent this year. Greece’s ASE
Index slid to its lowest since at least 1989.
Global equities have
been battered in volatile trading amid investor concern over oil prices,
earnings and the strength of the U.S. and Chinese economies, with the
MSCI’s All-Country World Index approaching a bear market. The Stoxx 600
now trades at 13.6 times estimated earnings, about 22 percent below its
April 2015 peak.
Source : Bloomberg
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