European stocks close sharply lower
15-01-2009
European shares closed lower on Wednesday, falling for the sixth consecutive session, with financials hammered as heavyweight HSBC slid on worries it will need to raise money to shore up its balance sheet. HSBC closed 8 percent lower after Morgan Stanley analysts said the bank is likely to halve its dividend and may need to raise up to US$30 billion in a rights issue. Royal Bank of Scotland fell 18 percent. Other banks to fall included BNP Paribas, Banco Santander and Credit Suisse, down between 5.7 and 8.6 percent. Britain's Barclays said it was cutting more UK-based jobs in its retail and commercial banking business. Its shares closed 14.4 percent lower. HBOS and Lloyds fell 13.5 and 11.9 percent respectively. HBOS will delist this week after Lloyds takes it over. Around Europe, the UK's FTSE 100 index closed 5 percent lower; Germany's DAX index and France's CAC 40 both lost 4.6 percent.
