1002 GMT - The hit that European bank shares are taking from the tariffs placed on importing goods into the U.S. is understandable, Keefe, Bruyette & Woods says in a research note. The Stoxx Europe 600 Banks Index falls 3.2%, with Asia-focused London-listed lenders Standard Chartered and HSBC taking some of the biggest hits. Analysts see little room for negotiation based on the U.S. Treasury's calculations. For banks, the tariffs could represent an around 5% hit to earnings depending on the reaction of central banks' interest rates--a key revenue source for banks--and the evolution of provisions, they write. "The real hit to the European economy is if exporters choose to close factories in Europe and make large-scale redundancies," they add. (elena.vardon@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 06:02 ET (10:02 GMT)
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