News Column

Espirito Santo

July 12, 2014

Katie Allen

Financial markets regained some poise yesterday as fears abated about the potential spread of problems at one of Portugal's biggest banks.

The suspension of shares in Banco Espirito Santo on Thursday sparked panic selling on both sides of the Atlantic amid concerns that it would lead to a wider run on the eurozone's debt-ridden banking sector.

Some of those losses were recouped on the FTSE 100 yesterday and the main indices in Portugal, Spain and Italy all rebounded.

However, analysts warned that some fundamental problems in the single currency bloc remained unresolved.

Michael Hewson, chief market analyst at CMC Markets UK, said: "Events in Portugal are a wake-up call to complacent investors who believed Europe was starting to address its peripheral banking problems."

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Source: Guardian (UK)

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