German bank shares slide, DAX underperforms

Published On : 09/11/2024

LONDON (Reuters) – German bank shares were among the worst performing European equities on Tuesday, as a selloff in U.S. lenders following downbeat comments from the boss of Goldman Sachs rippled through European markets.

Deutsche Bank shares closed down 4.9%. Analysts flagged a possible readacross from comments on Monday evening by Goldman Sachs chief executive David Solomon, who said trading revenue at the U.S. investment bank will probably slip 10% in the third quarter.

Shares in Deutsche rival Commerzbank were also down 2.5%.

They were among the worst performing stocks in the European banks index, which was off 1.4%. Britain’s Barclays fell 3.6%.

Overall, German equities underperformed the rest of the region on Tuesday, with Frankfurt’s DAX down 0.9% against a 0.5% fall in the STOXX 600. BMW was the biggest weight on the index, with shares down 11.2% after it cut its 2024 profit margin outlook.

Weakness in the German economy has been in focus in recent days after data on Sept 6. showed German industrial production fell more than expected in July, fuelling fears of recession in Europe’s largest economy.

Many German companies are big exporters with exposure to China, where faltering growth is adding to concern about a broader global slowdown.

(Reporting by Lucy Raitano; Editing by Amanda Cooper)

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