European Banks Are BackslidingJune 26, 2014
Over the last week, European banks have been the worst performing industry group in the MSCI World index. As a group, they are down 4.57%, on average, and have underperformed the MSCI World index by 5%. While banks in North America and Asia are not market leaders, they have not experienced the hit that their European peers have in the last week. Since bank relative performance is often an input in models of financial conditions, this would suggest a slight tightening in financial conditions in Europe recently.