European Stocks Sink on Growing Worries About the Banking Sector

Michael Hewson, Chief Market Analyst at CMC Markets said investors are dumping financial stocks on worries that profitability is at risk in a low rate environment. Sweden’s Central Bank moved interest rates further into negative territory, which Hewson said rattled investors and also raised speculation of more aggressive moves from the ECB. Investors moved their money into safer assets, like debt. Additionally, Hewson cited ongoing worries about the mining sector, as Rio Tinto (RIO) scrapped its policy of maintaining or raising dividends. Hewson said there are also worries about future earnings growth in Europe.