European bank stocks slipped to a six month low Thursday amid a combination of downbeat assessments for the current quarter from some of the region’s biggest lenders, a surge in interbank lending costs and threats of “tough and intrusive” oversight from the region’s regulator.
The Stoxx Europe 600 Banks index, the region’s sector benchmark, slipped 1.4% to 176.42 points, the lowest level since September, led by another session of declines for Deutsche Bank (DB) , Germany’s largest lender, and an extended slump for Credit Suisse Group (CS) after CEO Tidjane Thiam reportedly described trading in the first three months of the year as “very confused.” The Stoxx 600 Banks index has now fallen more than 10.6% from it late January peak.
