Sovereign debt is hurting banking stocks: Will the correction continue?
Spanish banking stocks are fighting to avoid a third consecutive week of losses on the stock market, which would be the worst streak since last March.
Spanish banks are trying to avoid a third consecutive week of losses on the stock market, which would be their worst streak since last March. The Ibex 35 Banks index has lost 8% of its value since reaching a historic high of 2,241 points on September 3. Bankinter analysts have advised reducing exposure to European banking stocks due to potential risks related to rising bond yields and increased perceived risk in French banking.
Major Spanish banks, including Santander, BBVA, CaixaBank, and Sabadell, have significant exposure to European sovereign debt, with a total of 260,000 million euros. Despite this, many experts believe that the current situation is not comparable to the 2008-2012 crisis and that Spanish banks are well-positioned to weather potential risks.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
