Economic news

European shares touch three-week trough as Turkey stress dents banks

Banking sector pushed European stocks lower on Monday as a rising economic crisis in Turkey hit investor confidence in banks exposed to the country, while pharmaceuticals group Bayer dipped 11 percent after its subsidiary Monsanto lost a crucial lawsuit.

Photo: Reuters

The pan-European STOXX 600 slumped 0.3 percent to a three-week weak point, with Germany's DAX slid 0.4 percent as pharmaceuticals group Bayer weighed.

Euro area bank stocks dipped 1.3 percent to a six-week nadir as Turkey-exposed banks BBVA, Unicredit and BNP Paribas fell 0.9 to 2.6 percent.

A deepened economic crisis in Turkey which took the lira to a fresh record low of 7.24 to the dollar overnight has fueled selling across global markets with some contagion to other emerging markets.

Shares in Air France KLM slipped 5.6 percent after its largest pilots’ union said over the weekend further strikes were possible if pay negotiations with management did not resume.


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