FRANKFURT/PARIS/MILAN (dpa-AFX) - Shares of Europe's banks faced tough going on Wednesday. The sector index is struggling to hold its 21-day moving average, from which it had kept a comfortable distance since November. Last week, it reached its highest level since 2008. In the DAX, shares of Commerzbank and Deutsche Bank lost around 2 percent midweek.
Potential new US tariffs could, according to Bundesbank President Joachim Nagel, impact future interest rate decisions by the European Central Bank (ECB). "Uncertainties related to the tariff negotiations will have some impact on monetary policy," said Nagel, who is also a member of the ECB Governing Council, to US broadcaster CNBC.
Accordingly, tension is high ahead of US President Donald Trump's appearance at the World Economic Forum (WEF) in Davos. Trump is expected to further increase pressure on the Europeans, with the goal of incorporating Greenland into the United States./ag/jha/
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