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European Stocks Down Again On Bank Concerns


Japan's Nikkei index and Hong Kong's Hang Seng index were both down more than one percent on August 11.

Japan's Nikkei index and Hong Kong's Hang Seng index were both down more than one percent on August 11.

European stock markets fell again today, giving up earlier gains due to fears over the eurozone debt crisis.

Shares suffered massive losses on August 10, with French banks particularly affected as investors worried that the banks faced problems because of their exposure to Greek debt.

Shares in France's second biggest bank, Societe Generale, briefly crashed more than 20 percent on August 10, but later recovered some of their losses.

French banks and insurers have agreed to reschedule 15 billion euros ($21.2 billion) worth of Greek debt as part of an EU rescue package.

The French government has denied speculation that, after the United States last week, France could be next to lose the highest-level AAA credit rating because of problems with French banks.

Ratings agencies have also reaffirmed France's top-tier rating.

Asian Stocks Down, Gold At New Record High

Meanwhile, Asian stocks have fallen and gold has risen to a new record, as investors seek a safe haven amid the global economic turmoil.

Japan's Nikkei index and Hong Kong's Hang Seng index were both down more than one percent on August 11. This followed a 4.6 percent decline of the U.S. Dow Jones average and losses on major European markets on August 10.

Gold, meanwhile, surged past a record $1,800 an ounce on August 11, following big gains the previous day.

The price of gold has risen more than 10 percent so far this month as world markets have been roiled by the U.S. credit rating downgrade and concerns about the European debt crisis.

compiled from agency reports
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