European stocks have retreated for a sixth day. This is the longest losing streak since 2005.
The chill on the markets stems from speculation that inflation will force central banks to increase interest rates. This has worsened the outlook for lenders as the economy slows.
Two days after completing Europe’s biggest rights offering, the Royal Bank of Scotland lost ground after it said it faces more bad news than good news. One analyst said the banks are at the heart of the weakness in markets and investors now fear a negative spiral leading to tighter conditions in credit markets.