European shares finished the day down 2.22 percent recording another big monthly loss.
Banks slumped – Lloyds’ losses pulled its shares down 22 percent. Investors also fretting over major banks nationalisation possibilities following news the US government will own more than a third of embattled lender Citigroup’s shares. The shrinking US economy added to the market jitters and pulled down oil prices ending three straight days of gains. The details of the US budget had a negative effect on pharmaceuticals on fears that budget proposals targeting high drug prices in the US will hit their profits. The euro lost value as the dollar strengthened.