Greece, Spain weigh on shares
Stocks post the biggest weekly drop since September
Frankfurt: European stocks posted the biggest weekly drop since September as Greece moved closer to a possible exit from the euro and concern mounted that Spanish banks will need rescue.
A gauge of lenders slumped for the third week, as Banco Espirito Santo lost the most since at least 1993. Bankia lost 15 per cent. Opap closed in Athens trading with the biggest slide since it sold shares to the public in 2001, after first-quarter profit decreased 21 per cent.
The Stoxx Europe 600 Index fell 5.2 per cent to 238.88 last week. The gauge has tumbled 12 per cent since this year's high on March 16 as Greek leaders failed to form a government after elections, squabbling over austerity measures.
"The markets are signalling a risk-off attitude and signs of fatigue regarding the question about what to do with Greece are evident," said Ben Hauzenberger, a Zurich-based fund manager at Swisscanto Asset Management AG.
National benchmark indexes fell in all 18 western European markets last week. The UK's FTSE 100 declined 5.5 per cent. France's CAC 40 lost 3.9 per cent and Germany's DAX slid 4.7 per cent. Greece's ASE Index plunged 10 per cent.
