Stock markets react negatively to banking concerns
July 11 , 2014
Suspension of shares in Banco Espírito Santo, Portugal's third largest bank, have rekindled investors’ fears about the European banking system and financial markets, spooking stock markets in the continent, and beyond.
After the downgrading of the bank’s credit rating, its shares fell by 19%, leading to a halt in their trading on the Lisbon stock exchange.
Shares of Italian, Spanish, and Portuguese banks dipped amid fears of hidden bad debts. Experts warn that there are concerns about banks in Europe harboring bigger debts than previously believed.