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European Banks Extend Declines on Recession Concerns

Updated on

European banking stocks plunged to the lowest in more than a year on concerns the euro-area region is headed for its third recession since the financial crisis erupted in 2008.

The benchmark STOXX 600 Banks Index dropped as much as 4 percent, the biggest intra-day decline since August 2013, and closed down 1.4 percent. Banca Monte dei Paschi di Siena SpA, Italy’s third-largest bank and Banco Comercial Portugues SA, were the worst performers, with Monte Paschi down 8.7 percent to 82 cents in Milan. Banco Comercial was down 6.3 percent in Lisbon.