European financial stocks fell Thursday as investors realized that banks will have trouble trying to raise new capital. Shares of Italy’s largest bank, UniCredit, dropped for a second day in a row after it had to offer huge discounts on its stock price Wednesday to attract investors.
Spain’s finance minister said in a newspaper interview Thursday that the country’s banks need to raise an additional $65 billion. Weaker demand at a bond auction in France also disappointed traders.
The euro fell as low as $1.2775 early Thursday, its lowest point since September 2010. It was trading slightly higher at $1.2782 late Thursday. The euro was worth $1.2938 late Wednesday.