European banks slide on recession worries after sweeping US tariffs

Shares in European banks fall on Thursday after U.S. President Donald Trump unveiled new tariffs, stoking worries about economic growth of the world's largest economy

The STOXX 600 banks index .SX7P was down 3.3% at 0807 GMT, the worst performer among other sectoral indices on STOXX 600 .STOXX index

Barclays strategists note that while tariffs risk was largely priced in, recession risk less so

(...) if recession fears increase and rates expectations get repriced lower, we believe that the sector may see some profit taking given high positioning on the space," they add

Germany's Deutsche Bank DBKGn.DE and Commerzbank CBKG.DE drop around 5% each

Asia-exposed banks such as Standard Chartered STAN.L, HSBC HSBA.L slip 7% and around 5%, respectively

Italy's BPER Banca EMII.MI, UniCredit CDRI.MI are down around 4%

France's Credit Agricole CAGR.PA, Societe Generale SOGN.PA, BNP Paribas BNPP.PA slip around 3%

Spain's Sabadell SABE.MC, CaixaBank CABK.MC Santander SAN.MC, Bankinter BKT.MC, are down between 2% and 3%