European shares tumble
Tuesday, 18 September 2007
LONDON, Sept 17 (AFP): Europe's main stock markets wobbled for a second straight trading day Monday as banking share prices extended heavy losses led by troubled Northern Rock.
Britain's fifth-biggest mortgage lender again lost almost one third of its share-price value as customers rushed to empty savings accounts at Northern Rock, which has fallen victim to a global credit squeeze.
"It's all about the banks, having seen investor panic over the weekend with Northern Rock depositors withdrawing an estimated 2.0 billion pounds (2.9 billion euros, US$4.0 billion) out of the bank," said Mark Priest, head of equity sales at Tradindex.
"With reports of the problem being bigger than expected, we are not going to see anything but selling. The market has also been swayed by comments made by (former chairman of the US Federal Reserve Alan) Greenspan on the UK housing market, saying it is inevitable the boom time has come to an end," added Priest.
Britain's fifth-biggest mortgage lender again lost almost one third of its share-price value as customers rushed to empty savings accounts at Northern Rock, which has fallen victim to a global credit squeeze.
"It's all about the banks, having seen investor panic over the weekend with Northern Rock depositors withdrawing an estimated 2.0 billion pounds (2.9 billion euros, US$4.0 billion) out of the bank," said Mark Priest, head of equity sales at Tradindex.
"With reports of the problem being bigger than expected, we are not going to see anything but selling. The market has also been swayed by comments made by (former chairman of the US Federal Reserve Alan) Greenspan on the UK housing market, saying it is inevitable the boom time has come to an end," added Priest.