EU Bank Stocks Hit Hard by US Tariff Announcement

In a dramatic start to the week, Europe's banking sector witnessed a significant downturn as global financial markets reeled from the impact of newly imposed US tariffs. The Euro Stoxx Banks Index (SX7E) and the STOXX Europe 600 Banks Index both saw steep declines, signaling widespread investor anxiety.

Major Banks Experience Sharp Declines

Leading the fall, Commerzbank and Societe Generale saw their shares drop by 11% and 10% respectively, with Barclays not far behind at a 9% decrease. Deutsche Bank, Banco Santander, ING Groep, BBVA, and HSBC also faced substantial losses, reflecting the market's nervousness over potential long-term economic repercussions.

Investors Brace for Prolonged Economic Slowdown

The sharp declines underscore growing fears among investors regarding an extended period of economic slowdown, fueled by escalating trade tensions. The banking sector's performance is a bellwether for broader market sentiment, suggesting challenging times ahead for global economies.