European Stocks Extend Losses on Credit Fears

The FTSEurofirst 300 index of top European shares unofficially closed down 1.6 percent at 1,511.91 points.

European equities slid to their lowest close in seven weeks on Friday as investors continued to dump banking shares on persistent credit worries and techs tumbled on fears over the outlook for the sector.

The FTSEurofirst 300 index of top European shares unofficially closed down 1.6 percent at 1,511.91 points, after losing as much as 2 percent in late trading.

Europe's benchmark index, down 5.3 percent so far this month, finished the week with a loss of 3.1 percent.

Royal Bank of Scotland dropped 3 percent, and Ericsson fell 3.6 percent.

"Don't touch the banks, financial services and insurance companies. It's not just a matter of writing off some loans, it's also the ongoing effect of the credit crunch that hits their business," said Pierre Sabatier, strategist at FactSet, in Paris.