European Bank Shares Tumble on Bond Selloff
Shares of major European banks fell as the global bond selloff accelerated again and oil prices increased inflation concerns.
The STOXX Europe Banks index dropped 3.5%, while losses in Societe Generale, Deutsche Bank, UniCredit and Intesa Sanpaolo exceeded 4%.
Investors are concerned that fiscal risks originating in France could spread across the euro zone and that rising bond yields could hurt banks' sovereign bond portfolios and housing-related exposures.
Yields in highly indebted euro-zone countries rose faster than those in Germany.
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