US Stock Market Move | European banking stocks broadly declined; Deutsche Bank Aktiengesellschaft (DB.US) fell 5%.

On Wednesday, European banking stocks broadly declined, with Deutsche Bank Aktiengesellschaft (DB.US) falling 5%, HSBC HOLDINGS (HSBC.US) dropping 4%, and Banco Santander S.A. Sponsored ADR (SAN.US) declining over 3%. Major U.S. bank stocks also followed suit, with Goldman Sachs Group, Inc. (GS.US) falling nearly 3%, Citigroup (C.US) dropping over 2%, and JPMorgan Chase (JPM.US), Wells Fargo & Company (WFC.US), Morgan Stanley (MS.US), and Bank of America Corp (BAC.US) each declining over 1%. On the news front, on October 7 local time, the STOXX Europe Banks index fell sharply in tandem with a sovereign bond selloff, dropping as much as approximately 3.5% intraday, hitting its lowest level since July. Major European banks hold substantial eurozone sovereign bonds on their balance sheets. The sharp bond market decline has resulted in unrealized losses on available-for-sale bonds, and investors worry this could erode capital buffers this is the most direct impact.