ETF Trends
ETF Trends

European stocks displayed their worst performance Thursday since March 2009, on reports of poor economic data and news that European banks were under scrutiny, again.

The Vanguard European ETF (NYSEArca: VGK), which tracks companies from major market in Europe, lost 4.2% on Thursday but was slightly up 0.28% on Friday.

The Stoxx Europe 600 index lost 4.6% on Thursday, the biggest loss since March 2009 when the index lost 5.3%, reports Andrea Typhonides for The WSJ.

“[Thursday’s] flash Eurozone PMI figures make grim reading and rise the spectre of a renewed economic downturn in the 17-country region,” Martin van Vliet, economist at ING Bank NV, said. [European Bank ETF Slides on Risk Factor]

Reports showed that the manufacturing and service sector suffered in September across the Eurozone, reflecting the struggle that the union is experiencing due to the sovereign debt crisis. [Global ETFs: IMF Reduces Outlook on World Growth]

In addition, Standard & Poor downgraded the ratings of a group of Italian lenders on Thursday. In France, banks were under fire again, with BNP Paribas refusing to talk with Qatar about a stake sale, with the latter and Societe Generale losing over 5%. iShares MSCI France Index (NYSEArca: EWQ) lost almost 5% after the news, but the fund has gained 0.49% at last check Friday.

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