Default countdown? European banks lose €50bn as Greek debt deadline nears

Monday, June 29, 2015
By Paul Martin

RT.com
June 29, 2015

The market value of European banks has shrunk by more than €50 billion after Greece shut down its banks until July, 6, the day after the referendum on the bailout deal is held.

The Stoxx 600 Banks Index fell by 4.4 percent, the biggest daily decline since November 2011, Bloomberg reports. Among the biggest losers is Portugues Banco Comercial down 9.1 percent, and Italy’s Banca Monte dei Paschi di Siena which slumped 7.2 percent. Spain’s Banco Popular Espanol has lost 6.5 percent and Banco de Sabadell was down 5.4 percent.

“In the short term we should see a very negative mood on markets…Sovereign bonds, banks of peripheral countries, will be the most affected by uncertainty,” the CEO of Milan-based brokerage Marzotto SIM Jacopo Ceccatelli told Bloomberg.

On Monday global stocks suffered their sharpest decline in about six months.

DAX of Germany has suffered the most, falling 4.17 percent this morning. In Asia, where trading finished by the time of publication Shanghai Composite showed the worst result, closing at 3.34 percent lower.

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