Portugal stocks fall sharply amid bank fears

LISBON, Portugal - Share prices on the Lisbon stock exchange are falling more than 4 percent and Portugal's bond yields are ticking higher amid growing concern about the health of one of the country's largest financial groups.

The market turmoil was an unwelcome relapse into investor uncertainty for Portugal, which concluded its three-year international bailout program in May. Portugal needed a 78 billion-euro ($106 billion) rescue in 2011 during the eurozone's debt crisis.

Espirito Santo Financial Group suspended trading in its shares Thursday as it addressed accounting irregularities at Espirito Santo International, its largest shareholder. Espirito Santo Financial Group is, in turn, the largest shareholder in Banco Espirito Santo, Portugal's largest bank. The bank's share price fell by more than 15 percent in morning trading.

The government insists the bank is solid.

Popular

Comments

CBSN Live

pop-out
Live Video

Market Data

Watch CBSN Live

Watch CBS News anytime, anywhere with the new 24/7 digital news network. Stream CBSN live or on demand for FREE on your TV, computer, tablet, or smartphone.

Watch Now

Market News

Stock Watchlist

New Android App

For your Android phone and tablet, download the FREE redesigned app, featuring CBSN, live 24/7 news.

Download