European stocks decline due to falling securities of British banks

On Friday, European stock markets showed a moderate decline, the main factor of which was a sharp drop in shares of British banks. At the same time, investors are waiting for new data on the eurozone economy and an important report on inflation in the United States.

NatWest securities lost 4.8%, Barclays – 3.5%, Lloyds – 3.8% after the analytical center recommended that the UK government tax banks' income from interest on reserves deposited with the Bank of England. The banking sector as a whole sank by 1.3%, stronger than others in the European market.

The STOXX 600 index fell 0.4% to 551.46 points, and may end the week in the red for the first time in the last four weeks. Political instability in France and concerns about the independence of the US Federal Reserve also exerted pressure on the market.

The CAC 40 lost 3.1% this week, becoming an outsider among European indexes. New data showed that inflation in France in August was below forecasts. Investors' attention is now focused on statistics from Germany and the report on PCE expenses in the United States.

According to analysts, the slowdown in inflation in the eurozone may strengthen expectations that the ECB will leave the rate unchanged in December.