European shares extend falls; banks, BP falls

LONDON (BestGrowthStock) – European shares extended falls on Friday afternoon, with banks falling after Goldman Sachs (GS.N: ) was downgraded, while oil majors BP (BP.L: ) and Total (TOTF.PA: ) came under pressure.

At 1422 GMT, the FTSEurofirst 300 (.FTEU3: ) index of top European shares was down 1.1 percent at 1,058.37 points, and had hit a day’s low of 1,055.77.

Energy companies were among those taking the most points off the index, with BP down 4.1 percent, extending its fall of recent days, on intensified worries about an oil spill in the Gulf of Mexico.

Total (TOTF.PA: ) was down 3.6 percent after results.

Banking shares fell after Goldman Sachs was downgraded by BfA Merrill Lynch, sending its shares down 7 percent.

“We’ve seen a downgrade of Goldman Sachs by Bank of America. They downgraded them quite sharply, and there is a possibility of criminal proceedings there as well and that is affecting the banking stocks.,” said Manoj Ladwa, senior trader at ETX Capital in London.

Barclays (BARC.L: ), Deutsche Bank (DBKGn.DE: ) and HSBC (HSBA.L: ) are down between 1.7 and 5.8 percent.

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(Reporting by Brian Gorman and Harpreet Bhal)

European shares extend falls; banks, BP falls