Europe’s banking index drops to a record low


Dhe stock markets are diving after Thursday’s bleak prophecy by Jerome Powell, President of the Federal Reserve. The Fed president warned Wednesday night that the worst recession in American post-war history. Bank stocks are particularly badly hit. The European Stoxx banking index fell by more than 4 percent to a record low on Thursday afternoon. The index has lost almost 50 percent of its value since the beginning of the year.

The supervisors have granted the banks a lot of capital relief so that they can maintain the supply of credit to companies and households even in the Corona crisis. Nevertheless, in the impending recession, supervisors, banks and investors fear a wave of loan defaults that can significantly weaken the equity of many institutions.

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XetraLondon SE Int. Level 1NYSESwitzerland OTCTradegateStuttgartLang & SchwarzFrankfurtSwitzerland OTCSwitzerlandViennaSwitzerland

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XetraTradegateLondon SE Int. Level 1Lang & SchwarzStuttgartFrankfurtSwitzerland OTCViennaSwitzerland

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Deutsche Bank and Commerzbank shares are also under pressure. Deutsche Bank’s share price fell more than 3 percent to 5.90 percent, while the Commerzbank title temporarily lost 4 percent and fell to a record low of EUR 2.86.


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