EU STOCKS post 2013 low

European stock markets extended losses into a fourth straight day on Friday, as investors worried about the prospect of a reduction in U.S. Federal Reserve stimulus and political uncertainty in Greece.

The Stoxx Europe 600 index dropped 1.2% to 280.40, closing at the lowest level in 2013. On a weekly basis, the index sank 3.7%, marking a fifth straight week of losses. On Thursday, the benchmark posted its largest one-day percentage drop since November 2011, hurt by comments from the U.S. Fed that it could start scaling back its $85-billion-a-month asset purchases later this year, as long as data continue to support the central bank’s forecast.

Greece stocks slumped after the Democratic Left party reportedly pulled out of the coalition government amid disagreement with Prime Minister Antonis Samaras’ abrupt decision to close the state broadcaster, ERT, last week.

Adding to worries about Greece, the International Monetary Fund threatened to suspend aid payments to the struggling country, unless euro-zone leaders move to plug a gap of 3 billion to 4 billion euros ($4 billion to $5.3 billion) in the country’s rescue program. The report said the gap stemmed from central banks refusing to roll over Greek bonds and that Athens wasn’t to blame.

The Athex Composite lost 6.1% to 830.01, with National Bank of Greece SA down 11%.

Germany’s DAX dropped 1.8% to 7,789.24, and closed 4.2% lower on the week.

SAP AG dropped 2.7% in Frankfurt after U.S. peer Oracle Corp.  late Thursday reported sales below analysts’ expectations.

France’s CAC 40 index slid 1.1% to 3,658.04 and closed out the week 3.9% lower. Banks posted some of the biggest losses, with shares of BNP Paribas SA down 2.6%, Credit Agricole SA 2.3% lower and Société Générale SA off 2.1%.

Banks were also lower in the U.K., where Royal Bank of Scotland Group PLC gave up 7.2% and Barclays PLC lost 2.3%.

The U.K.’s FTSE 100 index lost 0.7% to 6,116.17. The index dropped 3.1% on the week.

Outside the major indexes, TalkTalk Telecom Group PLC gave up 6% after analysts at Citigroup cut the firm to sell from neutral.

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