EU Bank Stocks Experience Sharp Decline Following US Tariff Announcement

The financial markets worldwide faced a severe downturn on Monday, with European banking stocks at the forefront of the decline. The latest imposition of tariffs by the United States has sent shockwaves through global markets, leading to widespread panic among investors.

By 9:28 am CET, the Euro Stoxx Banks Index (SX7E) had fallen by 4.68% to €156.89, while the STOXX Europe 600 Banks Index saw a more significant drop of 5.29% to €214.67.

Major Banks Hit Hard by Market Reaction

Leading the downturn, Commerzbank shares plummeted by 11%, with Societe Generale not far behind at a 10% drop. Barclays experienced a 9% slide, while Deutsche Bank and Banco Santander each fell by 8%. ING Groep and BBVA shares decreased by 7%, and HSBC saw a 6% decline as fears of an extended economic slowdown due to escalating trade tensions took hold.