LIVE MARKETS-Banks lead European shares lower, STOXX set for biggest weekly fall in three years

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BANKS LEAD EUROPEAN SHARES LOWER, STOXX SET FOR BIGGEST WEEKLY FALL IN THREE YEARS

Another steep drop in European banking stocks is weighing on the broader market on Friday, as investors continue to price in slower growth and lower rates in the wake of U.S. President Trump's tariff plans.

Markets are now fully pricing four quarter-point rate cuts from the Fed and almost three more from the ECB and the BoE by the end of the year.

Bank shares, which have benefited in recent years from resilient growth and higher interest rates, have been some of the hardest hit from Trump's tariff announcement.

The STOXX Europe 600 banks index .SX7P is down over 5.5%, taking the two-day drop to over 10%, its biggest two-day fall since March 2020.

The weakness in banks has pushed the pan-European STOXX 600 .STOXX down another 1.5% on Friday, taking its weekly drop to 5%, on track for its biggest weekly fall since February 2022.

Germany's DAX .GDAXI, France's CAC .FCHI and Britain's FTSE 100 .FTSE are all down between 1.2% and 1.5%.

Away from tariffs, investors are now awaiting today's U.S. jobs report, where a slowdown in job growth is expected. Economists are expecting the U.S. to have added 135,000 nonfarm payrolls in March and the unemployment rate to hold steady at 4.1%.

Here's your opening snapshot:

(Samuel Indyk)

FRIDAY'S OTHER LIVE MARKETS POSTS:

EUROPE BEFORE THE BELL: FUTURES EDGE DOWN AFTER THURSDAY'S SHARP SELL-OFF CLICK HERE

WALL STREET HAS MOST TO LOSE FROM TRUST LOST CLICK HERE