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Luc Van Hecka, chief economist at KBC Securities, noted that financial stocks were among the biggest losers as the STOXX Europe 600 banking index fell 0.5 per cent this morning (September 8th), Reuters reports.
But this worry will probably go away again.
He added: "Due to the financial crisis, capital base of the banking system in Europe is still rather narrow."
A triple decline was suffered by Barclays, Allied Irish Banks and the Bank of Ireland, who all fell from 1.3 to 1.5 per cent.
However, the FTSEurofirst 300 index - which contains the top European shares - increased by 0.1 per cent at 1,062.43 points.
This comes after the news provider noted yesterday that European shares were set to extend their losses today because of concerns regarding the financial strength of the European banks.
Posted by Greg Secker
