European stock markets react badly to Hester quitting as RBS chief

European stock markets reacted badly to the resignation of the Royal Bank of Scotland chief executive, Stephen Hester, and the indication that central banks may end their support of economies.

RBS was down over 4% after Mr Hester said he would step down by the end of the year.

“This announcement increases the uncertainty around the shares and potentially delays further any return of the bank to private ownership,” Gary Greenwood, analyst at Shore Capital, says while cutting his rating on RBS to “sell” from “hold”.