The stress test on banks has failed to calm nerves over Europe’s debt crisis
Stock markets fell on Monday as a healthcheck on banks failed to stem worries about Europe’s debt crisis.
Financial shares were heavy fallers, with Royal Bank of Scotland down 3.8% and BNP Paribas 3.1% lower.
In early trading the FTSE 100 index fell 0.9%, France’s Cac 40 shed 1.4%, and Germany’s Dax was 1.3% down.
On Friday, five European banks failed a stress test on their finances, while another 16 were said to be near the danger zone.
Meanwhile, the price of gold topped $ 1,600 an ounce for the first time as investors put money into the haven commodity.
Concerns among investors have also been fuelled by the Obama administration’s failure to agree a debt-ceiling deal.
The US risks defaulting on its debts unless Congress can agree new rules that will allow Washington to borrow more money.