European Stocks Drop as Bank Shares Flip Lower After Stress Tests

European stocks declined on Monday, with bank shares losing steam following stress-test results for the industry, and as an update on eurozone manufacturing activity showed further slowing.

The Stoxx Europe 600 dropped 0.6% to close at 339.86, with banks leading decliners after stress-test results out on Friday.

Gains in bank shares ahead of the test results led to the Stoxx 600 closing up 0.7% on Friday.

Source : Market Watch

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European Shares Little Changed as Investors Mull U.S. Rate Hike

European shares were little changed in thin trading as investors considered the implications of a possible increase in U.S. interest rates after Federal Reserve Chair Janet Yellen said a hike is likely in the coming months.

The Stoxx Europe 600 Index added 0.1 percent to 350.14 at the close of trading, after briefly rising as much as 0.2 percent, with automakers rising the most. The number of shares changing hands on the gauge was about 74 percent lower than the 30-day average. Financial markets in the U.S. and U.K. were shut for holidays.

Yellen said late Friday that an improving American economy would probably warrant another increase in borrowing costs “in the coming months,” a view also recently expressed by several regional Fed chiefs. She was speaking after data showed U.S. growth picked up more in the first quarter than was previously estimated. Traders have increased the odds of an interest-rate increase in June to 36 percent and to 59 percent for July.

Source : Bloomberg

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