Trump’s tariffs spark market turmoil: European banks drop, AT1 spreads widen. Risks limited by strong fundamentals, low NPLs, and ECB rate resilience.
In a context of sticky inflation, recession fears and geopolitical tensions, investors shift away from risky assets toward, notably, money markets.
European banks offer attractive rate optionality, strong loan growth prospects and record shareholder payouts amid still supportive macro conditions.