European bank shares resume fall, Deutsche Bank tumbles
Bond yields drop, yen gains as haven buying continues
Markets price in aggressive rate cuts from Fed

LONDON, March 24 Reuters Global stocks were pressured on Friday and safehaven buying supported government bonds as concerns about the stability of the banking system lingered.

The MSCI World share index traded 0.6 lower. Europe39;s STOXX 600 index was down 1.6.

A STOXX subindex of bank shares, which has swung wildly this week as traders debated if a forced weekend tieup between Credit Suisse and UBS was a mark of stability or incoming systemic stress, dropped by 6.5 on Friday, heading for its third consecutive week of declines.

Shares in Deutsche Bank plunged 13 as its credit default swaps, which reflect the cost of insuring debt against the risk of nonpayment, climbed to a fouryear high.

The German lender also announced plans to redeem 1.5 billion of tier 2 debt due not due to be repaid until 2028.

The moves highlight just how frail sentiment remains after turmoil in the U.S. and European banking sectors in the past two weeks have revived memories of the 2008 global financial crisis.

On Wall Street, futures tracking the bluechip SP 500 share index fell 0.7 and those on the technologyfocused Nasdaq 100 edged 0.4 lower.

U.S. Treasury sector Janet Yellen has this week tried to assuage investor fears about the health of U.S. lenders and the economic ramifications of a potential lending crunch if depositors…