Why Is Coronavirus Fear Hitting the Banks?
Fiona Cincotta March 6, 2020 2:51 PM
Euro Stoxx banks is down 24% since since coronavirus outbreak began.
Whilst with some stocks such as travel and tourism stocks it is simple to understand why they are falling so sharply with increasing coronavirus restrictions. With tech stocks - they are experiencing a massive supply chain disruption, again it is simple to understand why they are falling. Precious metal miners are also experiencing solid sessions despite the stock markets around them falling off the proverbial cliff.
On the CaC the worst performing stocks have been Credit Agricole, BNP Paribas and Société Generale. Italy’s Banco BPM has dropped 23% whilst Deutsche Bank is down 34% from its recent 2020 highs.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.