Eurozone shares hit worst level in weeks sparking mass stock dump of EU’s biggest names

Tuesday, August 2, 2016
By Paul Martin

EUROZONE shares hit a two-week low today as investors dumped stocks in some of the European Union’s biggest banks and companies.

Tue, Aug 2, 2016

Worst performer Commerzbank dived seven per cent, after the German bank warned its earnings would fall this year.

And Credit Suisse and Deutsche Bank fell 4.7 percent and 2.9 percent respectively.

The two firms are to be kicked off the eurozone’s bluechip banking index STOXX 50 on August 8 amid poor share performance.

The STOXX 600 was dragged down 0.8 per cent to its lowest level since July 19 amid disappointment from German retailer Metro and Chipmaker Infineon.

Germany’s top stock index the DAX also plunged by 1.5 per cent, while France’s CAC was nursing losses of 1.78 per cent.

Metro fell 5.4 per cent after reporting an unexpected loss in its third quarter amid restructuring costs at its core wholesale business in Germany, Belgium and Italy

And Infineon whose chips activate car airbags and enable cruise control, were down more than four per cent after its profit and sales missed predictions due to a drop in demand at its power management and card payments businesses.

Investors are fretting over the bank stocks amid low interest rates and continued fears over bad loans, which are predominantly weighing on Italy’s financial sector.

The Rest…HERE

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