On Monday, eurozone bank equities slumped to a 13-month low amid fears that a potential US and European embargo on Russian oil imports would stifle economic development and push prices even higher.
In early London trading, the eurozone bank index fell as high as 9.5 percent. At 10:20 GMT, it was down 5.2 percent. UniCredit, Commerzbank, Deutsche Bank, Raiffeisen, Bank of Ireland, and Societe Generale were among the worst performers, with shares falling between 4% and 10%.
Oil prices rose to a 2008 high of over $139 per barrel after reports that Europe and the United States were considering banning Russian oil shipments.
Fears of stagflation remain at the forefront of investor thoughts, Bernstein strategists Sarah McCarthy and Mark Diver wrote, noting that European banks have been hammered particularly hard.
After reaching to its highest level since 2018 in February, the eurozone bank index has dropped 37% in less than a month.
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