European lenders sink after Wall St rout
SAP slips after rival Oracle39;s revenue miss
U.S. nonfarm payrolls due at 1330 GMT
March 10 Reuters European shares tumbled to a more than onemonth low on Friday on uncertainty around U.S. monetary tightening, with financial stocks sinking 4.2 after a warning from a U.S. bank spurred worries about stress in the sector.
The panEuropean STOXX 600 index fell 1.7 on broadbased losses, with HSBC, Deutsche Bank, Barclays, Unicredit and Commerzbank down between 2.7 and 7.2.
The European banking index hit a sixweek low after U.S. techindustry lender SVB Financial Group launched a share sale to shore up its balance sheet due to declining deposits from startups struggling for funding.
Sentiment towards banking sector is very fragile after SVB39;s stock sale that has fueled concerns of capitalisation risk across the sector, said Fiona Cincotta, senior financial markets analyst at City Index.
It39;s… opening investors39; eyes to this problem which hasn39;t been on their radar so far. If it can happen to a U.S. bank, it could potentially happen to a bank in Europe as well.
All eyes are on U.S. nonfarm payroll data due at 1330 GMT following volatility spurred by a sharp rise in U.S. jobless claims and a decline in Wall Street bank shares.
February data is expected to show an increase of 205,000 after a blowout 517,000 in January. Any surprise to the upside could strengthen bets for continued aggressive interest rate hikes.
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