Investors are worried Europe’s debt contagion is spreading to France, the region’s second-largest economy.
Adding to the unease, Bank of America Merrill Lynch analysts downgraded European banks.
“As long as EU peripheral debt issues remain in the headlines despite the best efforts of the ECB, banks will likely remain a focal point for negative risk appetite and we believe this will weigh against optically cheap valuations and low investor positioning,” the analysts wrote in a research note, which downgraded the sector to neutral, according to a CNBC.com report.
iShares MSCI France
