Global shares tumble on global growth concerns; Treasury yields fall
By Sam Forgione
NEW YORK (Reuters) - Stock indexes worldwide tumbled on Monday, led by banking stocks in Europe and technology stocks on Wall Street on persisting fears of a global economic slowdown, while benchmark 10-year Treasury yields hit their lowest in a year on demand for assets deemed less risky.
European shares extended the previous week's big losses, with the FTSEurofirst 300 .FTEU3 index of top regional shares closing at its lowest level since Oct. 2013.
The STOXX Europe 600 banking index fell 5.6 percent, making it the top sectoral decliner. The index has lost more than 24 percent this year on concerns about banks' profitability and capital strength in an environment where monetary stimulus continues to put pressure on margins.
Wall Street continued Friday's technology-led selloff, with the benchmark S&P 500 stock index .SPX falling as much as 2.5 percent. The S&P financial index .SPSY fell more than 3 percent, with Bank of America (BAC.N: Quote), JPMorgan (JPM.N: Quote) and Citigroup (C.N: Quote) dragging down the index.
The cost of insuring the European financial sector's senior debt against default also climbed to its highest level since late 2013.
U.S. crude prices fell after a meeting between Saudi Arabia and Venezuela failed to reassure investors of measures to bolster sagging prices.
Chesapeake (CHK.N: Quote) tumbled 34 percent after sources told Reuters that the natgas company had tapped existing adviser Kirkland & Ellis to explore restructuring options. Earlier, the stock halved before being halted.
"We need oil to stabilize to provide some confidence for investors, partly because to a degree, investors' stress is high, earnings visibility is low, and market internals continue to weaken," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis. Continued...