Credit Suisse joined Deutsche Bank and Italian and Greek counterparts trading at or near record lows. A technical measure of market momentum has shown market stress more times than even during the latter part of 2008.
European banks have fallen to their lowest prices since early August 2012. That was right when they started rallying, after European Central Bank President Mario Draghi pledged to save the euro. Now even speculation that he’ll step up support as soon as next month is doing little to calm investors.
While central banks around the world have been keeping interest rates low to help an recovery, signs of an economic slowdown and the oil rout are hitting the market, sparking a global sell-off that’s already erased $16.4tril from equities since last year’s high. European lenders have particularly suffered. Worries that Deutsche Bank would struggle to meet debt obligations snowballed with growing concerns about bad loans and the repercussions of tougher regulations.
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