On Thursday European stocks fell, as the benchmark Stoxx Europe 600 Index extended its biggest retreat in four weeks, after Spain’s borrowing costs rose, renewing concern that the euro area has yet to contain its debt crisis. U.S. index futures fell, while Asian shares were little changed.

A gauge of banks posted its biggest three-day decline since January. The largest lenders in Spain, Italy, France and the U.K. contributed the most to the retreat by the Stoxx 600 Banks Index. UniCredit SpA (UCG), Italy’s biggest bank, fell 4.3 percent.

The Stoxx 600 slid 0.5 percent to 257.55 at 12:22 p.m. in London, the gauge’s third day of declines. The benchmark measure is headed for a retreat of 2.2 percent this week, its third week of losses. Markets are closed tomorrow for Easter. European stocks tumbled 2.1 percent on Wednesday, their biggest slide since the 6th March, after Spain sold fewer bonds than its maximum target at an auction and the Federal Reserve damped expectations for further monetary stimulus for the U.S.

Spain is in “extreme difficulty,” Prime Minister Mariano Rajoy said on Wednesday, raising the likelihood of a bailout for the second time this week. The government has widened its budget deficit target to 5.3 percent of gross domestic product from 4.4 percent and warned public debt will surge to a record 79.8 percent of GDP this year.

Most Asian shares fell, with the regional benchmark index headed for its biggest two-day decline in a month, after Spain struggled to sell bonds, renewing concern Europe won’t be able to contain its debt crisis. Japan’s Nikkei 225 Stock Average pared a loss to 0.5 percent after the rejection of a Bank of Japan nominee came as a victory for lawmakers pressing for more monetary easing.