Stress-Tests Results Fail to Revive Faith as Europe Banks Fall
- As lenders rose in July, options traders payed up to hedge
- Europe banks trading near record low versus broader market
Stoxx 600 Falls 0.5% as Banks Drag Down Equities
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While the stress tests showed most of the region’s banks would keep an adequate level of capital in a crisis, investors remained skeptical about the results.
Lenders in the benchmark Stoxx Europe 600 Index slipped 1.8 percent, reversing a gain of as much as 1.3 percent. UniCredit SpA sank 9.4 percent, while Britain’s Barclays Plc dropped 2 percent as it fared worse than Deutsche Bank AG, down 1.8 percent. Italy’s Banca Monte dei Paschi di Siena SpA, the worst performer in the regulators’ exam, rallied as much as 11 percent as it said it’s working on a plan involving private investors to help bolster its finances. By the end of the day, it had pared most of its gain.