Shares of European banks and financial companies fell broadly on Tuesday, weighed by weak guidance from major US investment banks and, for Swiss lenders, domestic regulatory uncertainty.
UBS led losses among Swiss blue chips, dropping 3% to 42.03 francs around 12:20 local time. Despite the decline, the bank remains up roughly 14% since the start of the year. Partners Group fell 2.7% and private banker Julius Bär slipped 2.1%, both underperforming a broader weak market.
The European sell-off was triggered on Monday when Goldman Sachs, JPMorgan, Bank of America and Morgan Stanley each posted losses between 1.7% and 5.1%. Bank of America CEO Brian Moynihan dampened hopes for sustained momentum by forecasting third-quarter trading revenue to match prior-year levels, signaling the strong first-half run may not continue.
In Switzerland, additional uncertainty stems from an upcoming Ständerat vote on Thursday over capital requirements for foreign holdings. The economic commission has proposed a significantly watered-down approach compared with the Federal Council's original demands, and it remains unclear whether the smaller chamber will follow the commission's line.
Across the continent, the European banking index posted sharp losses. Deutsche Bank was among the hardest hit within the DAX, contributing to the sector-wide weakness.
