European Markets Slide to Three-Month Low Amid Oil Price Surge and Bond Yield Spike
European markets tumbled on Tuesday, reaching a three-month low due to rising oil prices and bond yields. The pan-European STOXX 600 index fell by 0.8%, dipping to 630.99 points, its lowest since June 12.
Financial services and banking stocks were among the hardest hit, with losses of 1.3% and 2.7% respectively. Major European banks suffered significant declines, with UBS plummeting 4.2%, while Deutsche Bank, UniCredit, and Standard Chartered also saw substantial losses.
The market downturn was exacerbated by Bank of America CEO Brian Moynihan's warning that investment banking fees would decline by at least 10% in the third quarter, eroding confidence in banks' future earnings.
Rising U.S. Treasury yields, hitting a two-decade high, and increased tensions on Gulf energy infrastructure pushed oil prices up over 3%, fueling inflation fears and further weakening market sentiment.