European shares tumble as banks, Fed uncertainty weigh

Kitco Media
By Reuters
Published:
Updated:
Reuters
(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window) March 10 (Reuters) - European shares tumbled to a more than one-month low on Friday as uncertainty regarding U.S. monetary policy gripped investors, with bank stocks sinking 4.5% after a warning from a U.S. bank spurred worries about stress in the sector. The pan-European STOXX 600 index fell 1.3%, with HSBC , Deutsche Bank , Barclays , Unicredit and Commerzbank down between 4.9% and 6.7%. The European banking index hit a six-week low after U.S. tech-industry lender SVB Financial Group launched a share sale to shore up its balance sheet due to declining deposits from startups struggling for funding. All eyes are on U.S. non-farm payrolls data due later in the day following volatility spurred by a sharp rise in U.S. jobless claims and a decline in Wall Street bank shares, which tempered bets that the Federal Reserve may have to go big with this month's interest rate hike. February payrolls data, due at 1330 GMT, is expected to show an increase of 205,000 after January's blowout 517,000 figure. Any surprise to the upside is seen strengthening bets for continued aggressive interest rate hikes. (Reporting by Susan Mathew in Bengaluru; Editing by Subhranshu Sahu)

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