Hungary announces on Friday that the country financial problems:
The Hungarian prime minister’s spokesman declined to comment on remarks by Lajos Kosa, managing vice president of Hungary’s ruling Fidesz party, that Hungary is facing a Greece-like sovereign-debt crisis and will need crisis-management measures. But the spokesman, Peter Szijjarto, said the new government won’t let the country’s economy go the same way as Greece.
Hungary wasn’t only the country with debt issues. Spain struggles debt and it has a real estate problems which cause Spanish banks to lose value after Morgan Stanley cut price targets:
Banco Santander and Banco Bilbao Vizcaya Argentaria; shares in Santander fell 5.8%, while BBVA slid 6.8%.
This led European Bourses to fall dramatically:
The Stoxx Europe 600 index declined 1.8% to 244.53, wiping out the 1.4% gain of the previous session. The decline pared gains for the week to just 0.2%.
Among major national indexes, London’s FTSE 100 fell 1.6% to 5126.00, Frankfurt’s DAX lost 1.9% to 5938.88, and Paris’s CAC-40 skidded 2.9% to 3455.61. All three declined for the week.