Stability fears lead to dumping of bank shares

Deutsche Bank led a sell-off in European banking shares late last week amid mounting fears another bank could slip into trouble after the emergency merger of UBS and Credit Suisse.

But some strategists and investors cautioned that it might be a fear-induced sell-off, rather than having been triggered by concerns over liquidity.

“Waves of bad news keep hitting the banking sector and the tide doesn’t look like it’s set to turn any time soon,” said Susannah Streeter, the head of money and markets at Hargreaves Lansdown.