European stocks set to wipe out weekly gains as banks plunge
European stocks are set to erase weekly gains as the STOXX 600 index falls 1.5%, marking its largest drop in six weeks. Concerns over U.S. regional banks have negatively impacted global lenders, with European banks down 2.4%. Notable declines include Deutsche Bank, Barclays, and BNP Paribas. Novo Nordisk shares dropped 4.6% following U.S. price reduction announcements, while Spain's BBVA shares rose 7% after a failed takeover bid for Sabadell, whose shares fell 7%.
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Oct 17 (Reuters) - European shares tumbled on Friday, on course for their biggest drop in six weeks, as renewed concerns about the health of U.S. regional banks hurt lenders globally.
The continent-wide STOXX 600 index (.STOXX) dropped 1.5% by 0714 GMT, set to wipe out weekly gains.
European banks (.SX7P) slid 2.4%, with shares of Deutsche Bank (DBKGn.DE) , Barclays (BARC.L) and BNP Paribas (BNPP.PA) leading declines.
The U.S. regional banks index (.KRX) dropped 6.3% on Thursday after announcements from two lenders fuelled investor unease about hidden credit stress.
Among other early movers, Novo Nordisk (NOVOb.CO) fell 4.6% after U.S. President Donald Trump said that the price of Danish drugmaker’s best-selling weight-loss drug would be lowered and that negotiations over price changes would be swift.
Spain’s BBVA (BBVA.MC) jumped 7% after the lender failed to convince Sabadell (SABE.MC) shareholders to back its 16.32 billion euro ($19.07 billion) hostile takeover bid. BBVA said it would immediately resume shareholder remuneration.
Shares of Sabadell fell 7%.
