European shares hit six-week closing low

LONDON (BestGrowthStock) – European shares fell to a six-week closing low on Tuesday after concerns over Ireland’s turmoil and the possibility of contagion to its regional peers intensified, and tensions in the Korean peninsula escalated.

The pan-European FTSEurofirst 300 (.FTEU3: ) index of top shares provisionally closed down 1.3 percent at 1,078.87 points ending lower for the third session in a row.

“The Irish bailout continues to cause uncertainty amongst European investors as concerns about the potential of contagion to other countries have increased,” Angus Campbell, head of sales at Capital Spreads, said.

“Equity markets are going to continue to suffer and the selling has been compounded by the geopolitical unrest in Korea.”

Investor sentiment was hurt early on Tuesday after North Korea fired dozens of artillery shells at a South Korean island.

Banking stocks continued their slide from the previous sessions as worries over the euro zone peripheral debt crisis weighed. Bank of Ireland (BKIR.I: ) dropped 22.8 percent, while Spanish banks BBVA (BBVA.MC: ) and Banco Santander (SAN.MC: ) fell 3.9 percent and 4.7 percent, respectively.

(Reporting by Joanne Frearson; editing by Simon Jessop)

European shares hit six-week closing low