European Shares Tumble On Concern Over Credit Markets

(RTTNews) - European stocks tumbled on Friday amid renewed concerns about the health of the U.S. banking sector.

On Thursday, U.S.-based regional lenders, Zions Bancorp and Western Alliance Bancorp, disclosed that they were exposed to alleged fraud by borrowers, spreading jitters about credit market turmoil.

The pan-European Stoxx 600 slumped 1.6 percent to 562.34 after gaining 0.7 percent on Thursday.

The German DAX 1.9 percent, France's CAC 40 shed 0.7 percent and the U.K.'s FTSE 100 lost 1.6 percent.

Lenders Commerzbank, Deutsche Bank, BNP Paribas, Societe Generale and Lloyds Banking Group fell 3-6 percent amid signs of credit stress at U.S. regional banks.

British education company Pearson surged 4 percent after it reported a 4 percent rise in underlying group sales for Q3 2025.

Smiths Group advanced 1.5 percent. The industrial conglomerate has announced plans to sell or demerge two of its four core divisions.

Volvo plummeted 7.3 percent. The Swedish automaker said U.S. tariffs are likely to weigh on North American demand for heavy-duty trucks in 2025.

Danish drug maker Novo Nordisk plunged 6.4 percent after U.S. President Donald Trump vowed to sharply lower the price of its popular weight loss drug Ozempic.

Spain's BBVA soared 5.7 percent after its all-stock hostile bid to take over smaller rival Banco de Sabadell fell short of the minimum threshold.