Banks in Portugal were not the only ones suffering. Shares of Barclays PLC UK:BARC -2.86% BCS -1.33% and Deutsche Bank AG DB -2.02% DE:DBK -3.12% dropped over 4% and Credit Suisse SA CS -1.25% CH:CSGN -3.54% fell over 3% after Standard & Poor’s lowered its long-term ratings on those banks. The ratings firm said new regulations and uncertain market conditions will make it tougher for those banks to operate.
The German DAX 30 index DX:DAX -1.60% fell 2% to 7,748.42 as shares of Adidas AG DE:ADS -3.78% sank 5% after Deutsche Bank cut shares to hold from buy. BMW AG DE:BMW -1.85% fell 3% after J.P. Morgan Cazenove cut the automaker to neutral from overweight. The investment bank said it was switching out of BMW into Daimler AG DE:DAI +0.08% , which it lifted to overweight from neutral. Shares of Daimler fell 1.6%.
The French CAC 40 index FR:PX1 -1.58% fell 1.6% to 3,678.56, with BNP Paribas SA FR:BNP -3.16% sinking over 4% in line with European banks. Shares of heavyweight Total SA FR:FP -0.90% fell 1%, not helped by a sharp rise in crude prices.
London stocks were under equal pressure as losses for Barclays helped knock 1.6% off the FTSE 100 index UK:UKX -1.60% to 6,204.40. Mining stocks were among those losing ground — BHP Billiton PLC BHP -0.05% UK:BLT -3.28% slid 3.7% and Rio Tinto PLC RIO -2.07% UK:RIO -2.60% sank 2.8% — after China services data showed sluggish growth in June.
ARM Holdings PLC ARMH -0.16% UK:ARM +0.89% was nearly the only gainer in London, up 1% after UBS lifted those shares to buy from neutral on the view a pullback in shares due to news-flow looks overdone.