European shares in red amid global banking concerns

By Gokhan Ergocun and Tuba Sahin

ISTANBUL (AA) – Amid growing concerns over the recent banking crisis both in the US and the EU, European stock markets posted negative figures as of midday on Friday.

The developments in Swiss lender Credit Suisse and the bankruptcy of the US-based Silicon Valley Bank and Signature Bank raised concerns about the health of the global banking sector.

Last week, Credit Suisse went into a deep financial trouble and its rival UBS bought it for around 3 billion Swiss francs ($3.25 billion). After the takeover, UBS also saw loss in value of its shares.

While concerns caused pressure on European financial institutions, the STOXX 600 index has dropped nearly 10% since March 15.

On Friday, European shares decreased around 2% as of 1230GMT.

STOXX Europe 600 index declined 1.77% to 438.32 points.

The UK's FTSE 100 index dropped 1.75% to 7,368.11 points and Germany's DAX index fell 2.39% to 14,846.67 points.

Germany's Deutsche Bank shares decreased nearly 13% on Friday after credit default swaps surged late Thursday related to a possible global banking crisis.

The German lender's stock continued to drop for a third day in a row.

France's CAC 40 index was down by 2.25% to 6,678.48 points and Italy's FTSE MIB decreased 2.61% to 25,791.37 points.