Merrill Lynch e-mail sparks European bank fears - report

A damaging seven-line e-mail from Merrill Lynch, the investment bank, on stoked fears of financial difficulties at Commerzbank, one of the largest banks in Europe, the Financial Times reported on its web site.

The e-mail added to the market's already heightened sense of anxiety about the health of Europe's banking sector, with analysts anxious about stress levels in the financial system, the FT.com report said.