EU Bank Stocks Take a Nosedive Amid US Tariff Fears

The financial markets witnessed a sharp decline as shares in Europe's banking sector plummeted significantly on Monday. This downturn was largely attributed to the growing panic over the latest round of US tariffs, which have sparked fears of a prolonged economic slowdown.

Key indices show steep declines: By 9:28 am CET, the Euro Stoxx Banks Index (SX7E) had fallen by 4.68% to €156.89, while the broader STOXX Europe 600 Banks Index dropped even more sharply by 5.29% to €214.67.

Major Banks Hit Hardest

Among the most affected, Commerzbank saw an 11% plunge, Societe Generale dropped by 10%, and Barclays slid by 9%. Other significant losses included Deutsche Bank and Banco Santander, both down by 8%, with ING Groep and BBVA each losing 7%. HSBC wasn't spared either, falling by 6% as investors grappled with the escalating trade tensions.