Bank Sector in the Euro Zone Drop Knocking Back European Shares on Monday
The European stocks took a hit again on Monday as the Euro zone bank sector dropped on news that the European Central Bank was scrutinizing some of the loans that are not performing as expected. One of the top indexes reached its lowest point in more than one year's time.
The bank sector in the euro zone dropped 3.1 percent following the news. The traders cited weekend news that the ECB is questioning several of the euro zone banks issues related to non-performing loans. The central bank is making an effort to handle the bad debts that are rising in the region.
Spainish banking group, Banco de Sabadell, Credit Agricole of France and Banco Comercial Portugues of Portugal dropped 4.5 to7.8 percent.
Most of the Italian banks surpassed the performance of their peers last year, but now the brokers are beginning to turn away from the sector.
Name of some of the top droppers was provided by Italy. Banco Monte Paschi fell 14.8 percent, UniCredit was down 6.7 and Mediobanca dipped 4.8 percent.
Mark Foulds, sales trader at ETX Capital said that this particular sector has also come under pressure from the volatility over China in recent months. He added, "The uncertainty in the market, be it in Europe or wherever else, is causing these banks to suffer."
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