Shares in Europe's major banks lost further ground on Monday, as concerns about Turkey's deepening currency crisis spread to other emerging markets. Turkey's lira pulled back from a record low against the dollar on Monday morning after the central bank pledged to provide liquidity and cut.
European banks are the worst performing sector in the European Stoxx 600 index so far this year, a sharp reversal from being the index’s third biggest gainer last year as financial markets.
Bank of America Corp. strategist Sebastian Raedler said that while banks do not fully reflect the current weakness in euro-area growth momentum, there is potential for a short-term rally in the shares. “We stay overweight European banks,” the strategist wrote in a note on Friday. His projections for euro-area PMIs to recover and bund yields to rise translate into 30% or more upside for.
The STOXX Sector indices are available for global markets as well as for Europe, the Eurozone and Eastern Europe. Using the market standard ICB Industry Classification Benchmark, companies are categorised according to their primary source of revenue.This categorisation guarantees a professional and accurate classification of companies in their respective business environments.
The European stocks index has ended the day with its biggest loss on record after the European Central Bank unveiled a series of measures to shore up the eurozone economy but did not cut rates.
The European Central Bank's decision to keep interest rates unchanged disappointed investors causing bank stocks to inch lower. European Bank Stocks Slide as ECB Leaves Rates Unchanged - December.
The sell-off in Europe’s banks has dragged down other European stocks. The STOXX Europe 600 Index, which tracks 600 large European stocks, is down 15% this year to its lowest level since October.
Major European Bank Stocks are Connected in a State of High Volatility September 29, 2011 Kamil Yilmaz The IMF claims that European banks are in need of capital injections; the ECB disagrees.