Market Chaos as US Tariffs Trigger Worldwide Sell-off

The financial markets witnessed a dramatic downturn as shares in Europe's banking sector took a severe hit on Monday. The latest imposition of US tariffs has sent shockwaves through global markets, leading to widespread panic among investors.

Significant Losses Across Major Banks

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 not far behind, dropping 5.29% to €214.67. Leading the pack of decliners were Commerzbank and Societe Generale, with losses of 11% and 10% respectively, followed closely by Barclays at 9%. Deutsche Bank, Banco Santander, ING Groep, and BBVA also faced significant downturns, while HSBC saw a 6% decrease in its shares.

Investors Brace for Economic Slowdown

The sharp decline in bank stocks reflects growing concerns over a potential prolonged economic slowdown, fueled by escalating trade tensions between the US and its global partners. Investors are now keenly watching for any signs of resolution or further escalation in the ongoing trade disputes.