Europe shares fall to 3-mth low on Greece, Wall St

LONDON, May 7 (BestGrowthStock) – European shares plunged to a
three-month low in early trade on Friday following hefty
sell-offs on Wall Street, with mounting concerns about a severe
debt crisis in the euro zone forcing investors to dump equities.

The FTSEurofirst 300 (.FTEU3: ) index of top European shares
fell for a fourth straight session and was down 2.5 percent at
981.48 points at 0704 GMT after falling to a low of 979.25 —
the lowest since early February.

The index closed 1.6 percent lower in the previous session.
The index has fallen 12 percent in three weeks.

Financial stocks were among the top losers, with STOXX
Europe 600 banking index (.SX7P: ) slipping 2.7 percent. Barclays
(BARC.L: ), Lloyds (LLOY.L: ), Royal Bank of Scotland (RBS.L: ), BNP
Paribas (BNPP.PA: ), Societe Generale (SOGN.PA: ) and Credit
Agricole (CAGR.PA: ) slipped 2.8 to 5.6 percent.

“It is clear that the euro zone is in a very difficult
situation and there is no quick fix,” said Tammo Greetfeld,
equity strategist at UniCredit.

“It looks like that foreign investors, particularly U.S.
investors, yesterday for the first time significantly
acknowledged that there are some risks emanating from the euro
zone that could be severe.”

U.S. stocks (Read more about the stock market today. ) sank 9 percent in the last two hours of trading
on Thursday, before clawing back some of the losses, as a
suspected trading glitch and fears of a new credit crunch in
Europe threw markets into disarray.

Stock Market News

(Reporting by Atul Prakash)

Europe shares fall to 3-mth low on Greece, Wall St