Banks drag European stocks down

EUROPEAN stocks have slid in the first hour of trading, with the Stoxx 600 last down 2 per cent and European banks down 4 per cent, on track for their largest two-day drop since the Ukraine war began in February 2022.

Credit Suisse shares are near the bottom of the Stoxx 600, down 9.2 per cent, along with Commerzbank falling 9.3 per cent. Austria-based bank Bawag Group fell 10.6 per cent and Direct Line is down 5.5 per cent.

The heavy selling came even as US authorities stepped in to shore up confidence in the banking system after fears that the collapse of Silicon Valley Bank could trigger a broader financial crisis.

Europe’s volatility index has jumped to its highest since last October, reflecting the degree of nervousness in the market. REUTERS