Investor Alert

Jan. 13, 2009, 5:39 p.m. EST

Banks bring key indexes a fifth session of losses

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LONDON -- European shares ended weaker for a fifth consecutive session, led lower by banks as investors worried about the economy.

The pan-European Dow Jones Stoxx 600 index fell 1.4% to 201.66 points.

"I am still underweight banks, and I think that we haven't yet seen the next wave of bad-debt problems arising from loans to people who are losing their jobs and finding it difficult to make mortgage payments and credit-card payments," said Andrew Lynch , a portfolio manager at Schroder Investment Management.

On a national level, the French CAC-40 index dropped 1.5% to 3197.89, the German DAX 30 index fell 1.8% to 4636.94 and the U.K.'s FTSE 100 index dropped 0.6% to 4,399.15.

Standing out among the banks, shares of Britain's Barclays retreated 10% and Sweden's SEB, which was downgraded by Morgan Stanley, lost 5.8%.

Shares of Banco Santander fell 3.4% following news that Spanish prosecutors are investigating how customers of the bank lost more than €2.3 billion ($3.1 billion) by investing with Bernard Madoff.

Deutsche Postbank shares jumped 12% on hopes that a deal for Deutsche Bank /zigman2/quotes/203042512/composite DB +0.47% to take a minority stake will be finalized. Deutsche Bank stock eased 0.9%.

Shares of European Aeronautic Defence & Space rose 1.8% after the company disclosed that at the end of 2008, the company pulled out of a major U.S. acquisision as the board chose to preserve cash.

U.K. pub chains had a difficult day. Punch Taverns shares lost 12%, while rival J.D. Wetherspoon /zigman2/quotes/209658419/delayed UK:JDW +0.09% fell 2.5%.

Wetherspoon was downgraded to "sell" from "hold" by Deutsche Bank. The bank said Wetherspoon has the biggest refinancing hurdles to overcome among its rivals. UBS lowered its target price on Punch Taverns.

Write to Sarah Turner at sarah.turner@dowjones.com

$ 10.60
+0.05 +0.47%
Volume: 3.98M
Dec. 5, 2022 4:00p
P/E Ratio
Dividend Yield
Market Cap
$21.68 billion
Rev. per Employee
UK : U.K.: London
448.00 p
+0.40 +0.09%
Volume: 176,832
Dec. 5, 2022 4:35p
P/E Ratio
Dividend Yield
Market Cap
£568.04 million
Rev. per Employee

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