Categories: Breaking NewsBusiness

Banco Espirito Santo: European and US stock markets fall over Portugal’s bank concerns

US and European stock markets have fallen over concerns about the health of one of Portugal’s biggest banks.

Shares in Banco Espirito Santo were suspended after falling 17% following concerns about accounting irregularities at its parent group.

As a result, the Lisbon stock exchange fell more than 4%, Madrid’s IBEX was down 2.7%, while the Paris CAC 40 and Frankfurt’s DAX were both 1.8% lower.

Wall Street also opened sharply lower, with the Dow Jones falling 150 points.

This took the index well below 17,000, the level breached for the first time earlier this month.

US and European stock markets have fallen over concerns about the health of Portugal’s Banco Espirito Santo

Media reports highlighting concerns about certain financial practices at the Espirito Santo group surfaced at the end of last year.

Portugal’s central bank then ordered an audit into the group’s accounts, which uncovered “serious” accounting irregularities.

The Portuguese government has said that Banco Espirito is isolated from problems at its parent, which is registered in Luxembourg, and that public finances are not at risk.

At the height of the financial crisis, Portugal was forced to take a 78 billion euro ($106 billion) bailout from its European partners and the International Monetary Fund (IMF).

Portugal exited the bailout program last month as confidence in the country’s economy returned.

Government borrowing costs fell to an eight-year low of 3.58% in April this year, but renewed concerns about the health of the country’s financial sector pushed these back up towards 4% on Thursday.

Some commentators suggested the specific concerns about Banco Espirito fed into wider fears about the health of the eurozone economy.

W9bPs23OXN8
Clyde K. Valle

Clyde is a business graduate interested in writing about latest news in politics and business. He enjoys writing and is about to publish his first book. He’s a pet lover and likes to spend time with family. When the time allows he likes to go fishing waiting for the muse to come.

Recent Posts

Donald Trump and Elon Musk Celebrate Election Victory at UFC 309

Image source: Wikimedia Commons President-elect Donald Trump celebrated his election victory at the Ultimate Fighting…

5 days ago

White House 2024: Donald Trump Wins, Kamala Harris Calls Him to Concede Election

Millions of voters across the US chose to return Donald Trump to the White House…

2 weeks ago

Who Won? Donald Trump Declares Victory as He Addresses Jubilant Supporters in Florida

Donald Trump declares victory in the US election as he addresses jubilant supporters in Florida.…

2 weeks ago

Stocks Soaring as Donald Trump Closes in on US Victory

Stocks around the world are rising as Donald Trump appears to be on the cusp…

2 weeks ago

Who Won? Kamala Harris Cancels Election Night Party as Path to Victory Narrows

Donald Trump has won Pennsylvania, North Carolina and Georgia and taken a lead over Kamala…

2 weeks ago

Quincy Jones Dead at 91

Quincy Jones, the celebrated musician and producer who worked with Michael Jackson, Frank Sinatra, Ray…

2 weeks ago