Fears about one of Portugal’s biggest banks led to a sharp sell-off across European markets yesterday, testing the resilience of this year’s rally in eurozone shares and forcing bankers to pull fundraisings.
Shares in Banco Espírito Santo plunged more than 17 per cent to the lowest price in a year before Portugal’s stock market regulator suspended trading pending a statement from the bank.
Portugal’s PSI 20 share index closed down 4.2 per cent – its biggest daily drop in more than a year – while the jitters spread across Europe, with Italian and Spanish shares also tumbling.
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