The Stoxx 600 banks sector fell as much as 2.2 percent Thursday morning, adding to a 3.3 percent slide Wednesday and putting the index on course for its biggest two-day decline since March, Bloomberg reported. The selloff hit the sector’s recent leaders hardest: Societe Generale is down 25 percent from its August peak, and Deutsche Bank has fallen 18 percent from its high last month.
The trigger, per Bloomberg, is the return of French debt worries threatening to derail a rally that made banks Europe’s best-performing stocks for two years and had them on pace for stellar gains again in 2026. The move comes as France prepares to present its 2027 budget today amid widening OAT spreads.