Industries haven’t all been equal in the month since the stock market rout began, and the European banking sector has been hit particularly hard. European stock markets are down by about 35% on average since Feb. 19. European bank shares have declined by about 45%.
Investors don’t seem to distinguish between banks within the euro zone—the largest of which are supervised by the European Central Bank—and banks outside. Both France’s Société Générale (ticker: GLE.France) and the United Kingdom’s Barclays (BCS) are down by about 50%.
Markets have also equally treated the banks that were struggling before the coronavirus crisis and the ones whose business had picked up during the previous years of economic recovery. The shares of Germany’s long-struggling banking behemoth Deutsche Bank (DB) have sunk by almost 50%, just like those of France’s BNP Paribas (BNP.France).
The market pounding on the European sector came even as central banks, namely the Bank of England and the ECB, in their policy response to the crisis, put special emphasis on helping the banking sector.