Moody's downgrades credit ratings for 10 US banks, more cuts likely; stocks fall 1-3%
real estate as a concern, Reuters reported. The banking stocks downgraded by Moody's declined between 1.7% and 2.1%.
The KBW Regional Banking Index lost 1.38% on Tuesday, while the broader S&P 500 Banks Index also declined almost 1.07%. Also Read: Stock market today: What to expect from Nifty, Sensex, Bank Nifty in trade on August 9 Meanwhile in Europe, shares of major Italian banks Intesa Sanpaolo, Banco BPM and UniCredit fell between 5.9% and 9% after the government set a one-off 40% tax on profits reaped from higher interest rates, Reuters reported.
The European bank index slipped 3.54%. According to the Reuters report, Citigroup analysts calculated the tax could wipe nearly a fifth off Italian banks’ 2023 net income, while Bank of America estimates showed the measure could generate up to 3 billion euros ($3.3 billion) for the government.
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