Banking
German Bank Shares Slide, DAX Underperforms
Published by Uma Rajagopal
Posted on September 11, 2024
2 min readLast updated: January 29, 2026
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Published by Uma Rajagopal
Posted on September 11, 2024
2 min readLast updated: January 29, 2026
Add as preferred source on GoogleLONDON (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.
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)
Equity refers to the ownership value in an asset or company, represented by shares. It reflects the amount of ownership a shareholder has after all liabilities have been deducted.
A financial crisis is a situation where financial assets suddenly lose a large part of their nominal value. It can lead to a loss of confidence in the financial system and economic instability.
The German economy is the largest in Europe and is characterized by a highly skilled labor force, a strong industrial base, and a focus on exports. It plays a crucial role in the European Union.
A trading platform is software that allows investors to buy and sell financial securities, such as stocks and bonds. It provides tools for analysis and execution of trades.
Investment portfolios are collections of financial assets, such as stocks, bonds, and cash, held by an investor. They are designed to achieve specific financial goals while managing risk.
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