Bank shares whipsaw on Europe rumours

European equity markets are enduring another volatile session as rumours of funding shortfalls and eurozone intervention affect sentiment.

Early falls in European markets were led by French banks Société Générale and BNP Paribas, with the latter dropping 12% as it denied a Wall Street Journal report suggesting it had a funding shortage. SocGen shares tumbled 8%, the day after it announced asset disposals and released a statement concerning its own liquidity position. But rumours of an announcement from France and Germany on the status of troubled Greece, later denied by the French government, have prompted a reversal of fortune for both banks. SocGen was up 6.5% on the day at €16.57 in the early afternoon, with BNP Pa...