Banks in Europe are beaten while Trump’s tariff puts the recession on the horizon

European banks were beaten following the long -awaited definitions of US President Donald Trump.

The European Banking Index extended its bleeding on Friday morning with another 9.28 % in losses by 12:42 pm London time, as the giants of the giants German bankand Intesa Sanpaoloand Santander Bank and Unicredit Everything between 9 % and 11 % of its share price surrenders.

In Switzerland, which It faces an American tariff of at least 31 % Under the latest measures, the largest bank in continental Europe shares UBS 8 % decreased.

The lenders are wandering in a dual -attack storm with a massive exposure to the United States and the decrease in European economy prospects.

Economists have warned that the duties announced on Wednesday-which involve a 10 % blanket tariff for all commercial partners and more mutual fees on their targeted counterparts-can bleed to higher costs for American consumers, feed local inflation and calm the danger Uncomfortable high grown.

“I don’t think (American stagnation) is inevitable because the structure of the economy is very strong, but the risks have become uncomfortable.”

At the same time, Morningstar Surianch Sharma It was warned on April 3: “The economic slowdown (or recession) has a negative negative impact on the growth of American banking industry loans, credit costs, investment banking fees, trading profit, and asset management fees.”

It is important, the recession usually translates to the low interest rates that rippled into a net interest margin for the financial sector, which also reduces the demand for loans and enhance the possibilities of failure to pay.

European banks-which have already been fighting this puzzle since the European Central Bank began to reduce prices in June of last year-had to mutate the traditional focus on pure lending of fee return services such as investment banking services and asset management.

In addition to responding to the great uncertainty in the prominent American economy, European financial institutions – and the broader global institutions – are also vulnerable to disruption and fluctuations in dollars, given their great reserves in the dominant currency in the world.

It is also affected by the possibility of suffocating European economic growth, as it offers commercial tariffs to demand goods from Europe. Inside the European Union, which will undergo a 20 % tax, Poland warned on Thursday that US protective trade policies would cost the Polish economy 0.4 % of its total local outcome, or nearly 10 billion Zlotys ($ 2.6 billion).

In the Thursday note, Deutsche Bank warned that the gross domestic product of the euro area may suffer from success from 0.4-0.8 percentage points in the wake of American definitions, greater than the expected result in the lender expectations 2025-2026.

The European Union’s executive arm is working on the European Commission, on a set of short -term economic proposals to support the region’s economy amid US tariff, Bloomberg News mentioned April 2 – With European Union President Ursula von der Lin so far Only The mass is “preparing for more counter -measures, to protect our interests and our actions if negotiations fail.”

Global Research Strategy at Bank of America warned of the large negative side of the banking sector in the wake of the definitions, noting that the lenders “have so far helped them in the strong narration to the base to the German summit and financial hopes, and for at least the assets of global global troubles.”

European banks, especially lenders in Germany, have joined regional defense companies in obtaining a ground in recent weeks after the European Union and its largest economy have taken steps to relax their debt rules to stimulate security spending and raise the possibilities of increasing activity in regional loans.