EU Bank Stocks Experience Sharp Decline Amid US Tariff Announcements

The financial markets witnessed a significant downturn as shares in Europe's banking sector took a nosedive following the latest imposition of US tariffs. This development has sparked widespread panic among investors, fearing the onset of a prolonged economic slowdown due to escalating trade tensions.

Market Reaction and Key Losers

By 9:28 am CET, the Euro Stoxx Banks Index (SX7E) had fallen by 4.68% to €156.89, with the broader STOXX Europe 600 Banks Index dropping even more sharply by 5.29% to €214.67. Notable declines included Commerzbank, which plunged by 11%, Societe Generale, down by 10%, and Barclays, which slid by 9%. Other major banks such as Deutsche Bank, Banco Santander, ING Groep, and BBVA also suffered significant losses, while HSBC was down by 6%.