Global Bank Stocks Tumble as U.S. Credit Concerns Trigger Market Jitters

Global financial stocks fell on Friday amid fears over credit quality in U.S. regional banks. The selloff reflected growing investor concern after recent U.S. auto bankruptcies raised questions about lending standards, evoking memories of the Silicon Valley Bank collapse two years ago.

European banks dropped nearly 3%, with Deutsche Bank and Barclays sliding around 6%, while Asian financial firms, especially Japanese banks, also suffered. On Wall Street, some regional banks rebounded after strong earnings, though Zions Bancorp and Western Alliance faced heightened scrutiny over loan losses and alleged fraud.

Analysts warn that cracks in credit could ripple across other sectors, including mortgage lenders, buy-now-pay-later firms, and brokerages. Meanwhile, gold prices hit record highs as investors sought safe havens amid market volatility.