Shares of European banks traded in the United States slumped on Friday as investors continued to fret over Greece's debt situation and new concerns about Italy added to the uncertainty. Italian banks dropped on concerns about their capital positions and after a Moody's downgrade threat on the group. Trading in UniCredit SpA and Intesa Sanpaolo was briefly suspended.
Intesa Sanpaolo SpA, the only Italian stock traded on US exchanges, fell 6.3 percent to $14.50 on the pink sheets. Greece remained in view as the country's government faced an electorate vehemently opposed to austerity measures that must be passed in parliament next week to avert default, but progress is being made in persuading banks to take part in a second bailout. Shares of the National Bank of Greece fell 7 percent to $1.32 while Barclays Plc dropped 3.7 percent to $15.35 and Deutsche Bank dropped 3.3 percent to $55.96. Credit Suisse lost 2 percent to $37.99.
The BNY Mellon index of leading European American Depository Receipts fell 1 percent while Europe's FTSEurofirst 300 index of top shares ended 0.1 percent lower, extending its losing run to eight weeks, the longest streak since 1998. The BNY Mellon index of leading ADRs fell 0.7 percent while the S&P was off 1 percent.
Asian stocks were higher, with the BNY Mellon index of leading Asian ADRs up 0.6 percent. Shares in Asia advanced after comments from Chinese Premier Wen Jiabao fuelled hopes that Beijing's policy tightening was nearing an end. China's government has been tightening policy in order to curb rising inflation. China Finance Online rose 1.5 percent to $3.29 while Japan's Mitsubishi UFJ Financial Group Inc rose 1.1 percent to $4.60. In Latin America, shares were mixed given uncertainties related to Greece. The BNY Mellon index of leading Latin American ADRs was 0.2 percent lower.
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