Once again on Friday, financial markets across Europe slipped on the back of investors expressing concerns and fears over banks that might be affected by the mounting sovereign debt of the already struggling and troubled European economies.

Traders and investors were concerned that banks, more-so major ones across Europe, might now end up facing a fresh round of problems mainly due to their ownership of the sovereign debt in countries like Greece, Portugal, Spain and Ireland, where there is growing risk of default. This might just manage to drastically hamper the recovery of a sector which is not doing very well to begin with.

The concerns over major European banks' future came just when the global markets were anyways falling, affected somewhat by the disappointing US employment data.

"The effects of these are negative", said Jon Peace, a bank analyst at Nomura in London.