Date
17 November 2017
Shares in Banco Espirito Santo have shed more than half of their value in the last month. Photo: Bloomberg
Shares in Banco Espirito Santo have shed more than half of their value in the last month. Photo: Bloomberg

Portuguese bank fears send shiver through markets

Global markets were rattled Thursday as fears about contagion from a major Portuguese lender sent shares down in southern Europe and the United States, the Wall Street Journal reported Thursday.

Shares in Banco Espirito Santo were halted on the Euronext stock exchange on Thursday after losing more than 16 per cent the previous trading day, CBC News reported, quoting The Associated Press. In the past month, shares in the bank have lost 54 per cent of their value.

Investors headed for the “perceived safety” of gold and US and German government bonds, with the 10-year German Bund trading at its strongest level since May 2013, the Wall Street Journal said.

Portugal’s benchmark index sustained the biggest losses, falling 4.2 percent while exchanges in Spain and Italy were down nearly 2 percent.

– Contact us at [email protected]

SK

EJI Weekly Newsletter

Please click here to unsubscribe