Europe markets tumble as Portuguese bank woes rattle nerves

Fortune

Remember the euro crisis? If not, take a look at the markets today to remind yourself.

European markets have taken a hard fall out of bed Thursday, on fears for the strength of Portugal’s largest listed bank, Banco Espirito Santo SA, whose shares were suspended in Lisbon after falling 17%.

The Euro Stoxx 600 index is down 1.0%, the main Lisbon index is down 4.2%, and the bond yields of  governments on the stressed periphery of the euro zone have shot up, while yields on bonds perceived as safe, like Germany’s, have fallen as investors flee to quality. Gold prices, another barometer of fear, are up 1.1% at a three-month high of $1,338.80 an ounce.

As so often with the eurozone, it’s not so much the proximate cause of the turmoil that’s worrying: it’s what that cause says about the eurozone’s broader failings: its lack of a common treasury to back its currency, its slowness in cleaning…

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