European stocks under pressure on lower banking stocks

European stocks fell today, Friday, to their lowest level in more than a month, as uncertainty related to US monetary policy dominated investors, with banking stocks falling 4.5 percent after a warning from a US bank raised concerns about troubles in the banking sector.

According to “Reuters”, the European Stoxx 600 index fell 1.3 percent, as the shares of HSBC, Deutsche Bank, Barclays and Commerzbank fell between 4.9 percent and 6.7 percent.

The European banking index hit a six-week low after SVB Financial Group, which lends to the US technology sector, launched a stock sale to improve its balance sheet due to dwindling deposits from start-ups struggling to obtain financing.

All eyes are on the US non-farm payrolls data due later in the day, after volatility caused by a sharp increase in US jobless claims and a drop in bank stocks on Wall Street reduced bets that the Federal Reserve would (The US Central Bank) may increase interest rates significantly this month.

The February jobs data, due at 1330 GMT, is expected to show an increase of 205,000 jobs after a huge January increase of 517,000 jobs.

Any increase greater than expectations would strengthen bets on continuing to sharply raise interest rates.