BUZZ-European financials: watch the swaps

** European equity traders increasingly looking to credit markets for cues on how to trade financial stocks, as the cost of insuring against defaults continues to rise

** Multiple traders point to breakouts in key CDS indices as evidence of growing concern on the health of Europe's banks and insurers

** iTraxx Subordinated and Senior Financials indices both hit multi-year highs on Wednesday. Charts: http://reut.rs/1PzMVs3 / http://reut.rs/1PzMPAo

** Stoxx 600 Banks index falls 4.9 pct, hitting lows not seen since August 2012

** Index lost around $200 bln - a fifth of its value - in January

(RM (LSE: RM.L - news) : alasdair.pal.thomsonreuters.com@reuters.net)