US Stocks Movement | European Bank Stocks Mostly Decline, Deutsche Bank (DB.US) Down 5%

According to Golden Ten Data APP, on Wednesday, European bank stocks fell across the board. Deutsche Bank (DB.US) dropped 5%, HSBC Holdings (HSBC.US) fell 4%, and Santander Bank (SAN.US) declined by more than 3%. Major U.S. bank stocks also followed with declines, as Goldman Sachs (GS.US) lost nearly 3%, Citigroup (C.US) fell more than 2%, while JPMorgan (JPM.US), Wells Fargo (WFC.US), Morgan Stanley (MS.US), and Bank of America (BAC.US) each dropped over 1%.

In terms of news, on October 7 local time, the STOXX Europe Banks Index followed a sell-off in sovereign bonds, sharply falling during the trading session with a maximum drop of around 3.5%, hitting a new low since July. The balance sheets of major European banks hold a large amount of eurozone sovereign bonds. The rapid drop in the bond market brings unrealized losses on bonds available for sale, and investors are worried about erosion of capital buffers—this is the most direct impact.