European shares hit lowest since Sept 2013 as banks extend falls

martes 9 de febrero de 2016 09:20 GYT

* FTSEurofirst down 1.9 percent to lowest in over 2 years

* Deutsche Bank turns lower as banks extend falls

* Vestas gains after beating earnings forecasts (Writes through, updates prices)

By Atul Prakash and Danilo Masoni

LONDON/MILAN, Feb 9 (Reuters) - European shares turned lower in early afternoon on Tuesday to touch their lowest level in more than two years with worries about the impact on banks of sustained low interest rates keeping sentiment fragile.

The pan-European FTSEurofirst 300, which slumped 3.4 percent on Monday, was down 1.9 percent by 1251 GMT to 1,215.12 points, its lowest level since early September 2013.

The European banking index fell 3.4 percent, reversing earlier gains and after sinking 5.6 percent on Monday. The index was set for its biggest weekly losing streak since 1998 as investors fret over the threat to banks' profitability and capital strength from compressed interest rate margins.

"The mood is clearly negative. What is needed is a strong and clear message from the ECB," said Activtrades Chief Market Analyst Carlo Alberto De Casa.

Deutsche Bank shares fell 1.9 percent. Late on Monday the German bank said it had "sufficient" reserves to make due payments this year on AT1 securities. Its shares had slumped 9.5 percent on Monday on concerns about its ability to maintain bond payments.   Continuación...