Credit Suisse and Deutsche Bank dropped from European blue-chip index
Deutsche Bank and Credit Suisse have been dropped from a European blue-chip stock index in another sign of the woes hitting the financial sector in Europe.
The two banks were dropped from the STOXX 50 index after their free-float market capitalisation - outstanding shares that are traded times price - fell below limits set by the index rules.
Deutsche Bank shares are down 65% in the past 52 weeks; Credit Suisse is down 60% over that period.
Bank earnings have been hit by low interest rates that squeeze lending margins, by regulatory requirements to strengthen their financial buffers, and by an uncertain economic recovery complicated by fears about the impact of Britain's vote to leave the European Union.