European banks are beaten while Trump prices have put the American recession on the horizon

European banks were beaten following the radical and more aggressive prices of US President Donald Trump.

The European banking index extended its hemorrhage on Friday morning with an additional 9.28% of losses at 12:42 p.m. London time, as giants Deutsche Bank,, Intersa Sanpaolo,, Banco Santander And Unicredit Everyone went between 9% and 11% of the course of their action.

In Switzerland, which faces an American rate of at least 31% under the last measures, the actions of the largest bank in continental Europe UBS were down 8%.

Lenders integrate the storm of a double height attack linked to its exposure to the United States and their prospects for decreasing the European economy.

Economists warned that the tasks announced on Wednesday – involving a 10% covered price on all business partners and other reciprocal samples from targeted counterparts – could bleed higher costs for American consumers, fuel domestic inflation and attach the risk of recession – that the chief economic adviser of Allianz Mohamed El -Erian Warns has now increased.

“I do not think that (an American recession) is inevitable because the structure of the economy is so strong, but the risk has become uncomfortably high,” he told Silvia Amaro de CNBC on the sidelines of the Ambrosetti forum in Cernobbio, Italy.

Meanwhile, Suryansh Sharma de Morningstar warned on April 3: “Economic slowdowns (or recession) have a materially unfavorable impact on the growth of the banking sector loans, credit costs, investment banking costs, profitability of exchanges and asset management fees.”

Recognizing, recessions generally translate into a drop in interest rates which are reversed in net contraction of interests for the financial sector, also reducing the demand for loans and strengthening the chances of default.

European banks – which have already fought on this enigma since the European Central Bank began to reduce rates in June of last year – were forced to move on traditional accent on pure loans to costs of costs such as investment bank and asset management.

Beyond reacting to a strong uncertainty in the leading American economy, European financial institutions – and broader – are also vulnerable to the disturbances and volatility of the dollar, taking into account their substantial reservations of the dominant currency of the world.

They are also affected by the prospect of suffocated European economic growth, because the commercial prices endanger the demand for goods in Europe. Within the EU, which will be the subject of a 20% levy, Poland warned Thursday that US protectionist trade policies will cost the Polish economy 0.4% of its gross domestic product, or about 10 billion zlotys ($ 2.6 billion).

In a note Thursday, Deutsche Bank warned that the gross domestic product in the euro zone could undergo a blow of 0.4-0.8 percentage points in the wake of American prices, larger than the successful success in the lender’s forecasts in 2025-2026.

The EU executive branch, the European Commission, works on a set of short -term economic proposals to support the region’s economy in the midst of American prices, Bloomberg News reported on April 2 – with the head of the EU Ursula von der Leyen so far, saying that the block “is preparing for other countermeasures, to protect our interests and our companies if negotiations”. “”

Bank of America’s global research strategists have warned of the significant banking sector as a result of prices, noting that lenders have so far been “helped by a solid ascending narration and German tax hopes, and are therefore among the least advanced assets in macro world prices.”

European banks, in particular lenders based in Germany, had joined regional defense companies to gain ground in recent weeks after the European Union and its greatest economy have taken measures to soften their debt rules to stimulate security spending, which increases the prospects for stimulating regional loan activity.