European Stocks are riding through a tough Journey

European stocks are riding through a journey which is at the lowest level of the last six months after amid growing concerns about the potential spread of the debt crisis in the Euro zone. Investors from the United States are moving out of Europe. This will affect all markets, including interbank market, “said Simon Maughan, the Reuters analyst at MF Global. The liquidity can be dried up for banks and smaller countries. It is a mini-liquidity crisis after the great shock of 2008.

The pan-European index FTSEurofirst 300 fell by 3.7% and stood at 969.32 points. The focus has been put on the sell-off of bank stocks with BNP Paribas, Barclays and Societe Generale recording losses ranging from 5.5% to 7.8%. Fears surrounding the Greece crisis have spread in Scandinavian markets as the stock exchanges in Copenhagen and Helsinki have recorded losses of more than 4%, while in Oslo and Stockholm losses are almost 3%. In Copenhagen, the OMX-20 index fell by 4.14% to 371.12 points, while the OMX 25 index in Helsinki fell 4.1% to 2001.08 points. In Stockholm, the main OMX 30 index closed at 944.57 points and the index of the Oslo lost 2.87% to 348.98 points.