Banks Lead Euro Stocks to 6-Year Low

European shares ended lower on Friday, retreating for the twelfth time over the past 13 sessions, led lower by financials as fears of more hefty losses in the sector deepened.

The pan-European FTSEurofirst 300 index of top European shares unofficially closed down 0.5 percent at 759.31 points, falling to its lowest close since April 2003.

Banks took the most points off the index. Barclays fell 14.7 percent as concerns grew that the bank may require further capital or be nationalized.

"Sentiment is very fragile. People want to believe in economic recovery and want to see some light at the end of the tunnel, but they are finding it very difficult to see that when you have got a banking system which is still experiencing severe difficulties," said Darren Winder, strategist at Cazenove. 

"Until they get the banking system into a situation where it can fulfill its normal obligations to the real economy and provide it with sufficient liquidity and credit, then I think people are generally going to continue to feel very nervous about the market," added Winder. 

BNP Paribas, Standard Chartered and Societe Generale were down 6-9.5 percent. 

Insurers were in the doldrums. Swiss Re lost 19.6 percent on worries it could make further writedowns when it reports full-year results on Feb. 19. 

A Swiss Re spokeswoman said the company did not comment on market rumors.      

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