Bank stocks slump amid ECB's dimmed outlook

|About: Bank of America Corporation (BAC)|By:, SA News Editor

The European Central Bank's dimmer outlook for the eurozone growth and lengthened timeline for when its next rate hike might occur are leading bank stocks lower, with, of course, Europe-based banks bearing the brunt.

The iShares MSCI Europe Financials Sector Index ETF (NASDAQ:EUFNsinks 2.3%.

Deutsche Bank (NYSE:DB), Germany's biggest lender, slides 4.9%; if that decline holds, it would be Deutsche's biggest one-day decline in a month.

Among other banks feeling the pain: Banco Santander (SAN -4%), UBS Group (UBS -2.3%), ING Groep (ING -2.5%), and Credit Suisse (CS -2.1%).

U.S. financials are also caught up in the downdraft, bringing the Financial Select Sector SPDR ETF (NYSEARCA:XLF) down 1.3%.

Among U.S. megabanks, Morgan Stanley (MS -1.5%), Bank of America (BAC -1.4%), Citigroup (C -1.4%), and Goldman Sachs (GS -1.3%) all saw shares fall more than 1%.

Meanwhile, the Dollar Index strengthens 0.5% to 97.39 and the 10-year Treasury rallies, pushing yield down 4 basis points to 2.65%.

Previously: Euro droops as ECB cuts 2019 euro zone outlook (March 7)

ETFs: XLF, FAS, FAZ, VFH, UYG, EUFN, FNCL, IYF, BTO, IYG, RYF, FXO, SEF, FINU, RWW, FINZ, EUFL, JHMF

Subscribe for full text news in your inbox