Global Markets Reel as US Tariffs Spark Financial Turmoil

In a dramatic start to the week, shares in Europe's banking sector experienced a sharp decline, as financial markets worldwide felt the pressure from the latest round of US tariffs. The Euro Stoxx Banks Index (SX7E) was notably down by 4.68% at €156.89 by 9:28 am CET, with the broader STOXX Europe 600 Banks Index falling even further by 5.29% to €214.67.

Major Banks Hit Hardest

Leading the downturn, Commerzbank saw an 11% plunge, closely followed by Societe Generale with a 10% drop, and Barclays sliding 9%. Not far behind, Deutsche Bank and Banco Santander each fell by 8%, while ING Groep and BBVA suffered a 7% loss. HSBC wasn't spared either, dropping 6% as investors grew increasingly concerned over the potential for a prolonged economic slowdown fueled by escalating trade tensions.