Banks and insurers concerns on a lack of political unity in the euro zone in tackling the debt crisis is one of the reasons analyst say for the 26 month low in share prices.
Adding to the gloom was the failure of the weekend’s meeting of finance ministers from the Group of Seven industrialised nations to come up with any fresh proposals for boosting global growth.
But it is fears that Greece could default on its debts which has hit the markets hardest.
“We need to realize that, yes Greece should default on an important portion of its debt. Until now we were trying to mask this so the fact
that we are realizing is making us think about all this money that we spent, and ask has it really helped, how much more do we need to put in and especially what will be the bill be for European banks at the end,” explained Nathalie Pelras from Richelieu Finances
French banks were the standout losers amidst fears they could be hit by a Moody’s credit downgrade.
The euro weakened dropping to its lowest level for ten years against the yen hit by that speculation that Germany is preparing for a Greek default.