- Banks fall on drop in EM currencies
- BoE's Carney signals end to forward guidance
- Germany's Schaeuble says Europe crisis over
FTSE 100: -1.71%
CAC 40: -2.92%
FTSE MIB: -2.30%
IBEX 35: -3.88%
Stoxx 600: -2.40%
Stoxx 600: -1.61%
Banks dragged European stocks lower on concerns that a weakening of emerging-market currencies may hurt earnings.
Banco Bilbao Vizcaya Argentaria declined as investors assessed a tumble in currencies in countries such as Argentina. Banco Santander also slumped.
Some fear the Federal Reserve's reduction in monetary is hampering growth in emerging markets.
The central bank began scaling back monthly asset purchases by $10bn to $75bn last month and will decide whether to scale back further when policymakers meet next week.
World Economic Forum
Bank of England (BoE) Governor Mark Carney said Britain was "very much part of Europe" when quizzed about the prospect of the UK's exit from the bloc today the World Economic Forum in Davos.
He said the Bank is fully engaged in European processes and developments but deals with the facts not hypothetical situations.
Ahead of his speech at Davos, Carney signalled that the BoE would scrap the central bank's so-called forward guidance.
The central bank has vowed to keep interest rates at the record low of 0.5% at least until unemployment falls to 7% but a faster-than-expected drop has put pressure on the Bank to change its guidance.
Chancellor George Osborne said today at Davos, "I completely reject that forward guidance is a failure" and added that it helped create "a very strong set of data in the UK".
German Finance Minister Wolfgang Schaeuble also attended Davos where he said Europe is recovering from years of crisis thanks to its biggest lender.
"Europe is no longer the centre of worries about the stability of the global economic development."
Aberdeen Asset Management tumbled after Morgan Stanley cut its rating on the money manager to 'underweight' from 'equal weight'.
Celesio advanced as McKesson Corp. agreed to buy majority owner Franz Hanile Cie.'s entire stake in the German healthcare and pharmaceutical company.
Syngenta was down after the maker of crop chemicals was asked by the National Grain & Feed Association and North American Export Grain Association to halt sales of two types of genetically modified corn seeds in the US that have not been approved in China.
Nokia bounced up as Societe Generale raised its rating on the shares
'buy' from 'hold'.
The euro fell 0.15% to $1.3676.
Brent crude futures decreased by $0.308 to $107.250 per barrel, according to the ICE.