European Financial Stocks Are Signaling More Problems
Since the Russian/Ukraine war began the leading financial stocks have sold off. Often, the big banks could have some exposure to Russia and that could be the cause for the decline. This is normal and expected, but the leading European banks are much worse and could be signaling real problems for the European Union.
The two leading European bank stocks that I like to follow are Deutsche Bank AG (DB) and Credit Suisse Group (CS). Both of these stocks have plunged in waterfall fashion since February 10th, 2020. In fact, a case can be made that they foreshadowed the conflict in Ukraine. Traders should note that Credit Suisse Group (CS) stock is now testing the March 2020 lows which was due to the coronavirus scare. This stock is in a severe down-trend and could be telling us that more problems are ahead.
Deutsche Bank AG (DB) is a much better-looking chart than Credit Suisse Group (CS) despite breaking below its important 200-week moving averages. This stock still has a lot of chart support in play before it trades down to its March 2020 lows. Either way, it is still signaling a lot of problems for the European Union economy and stock market at this time. Remember, financial stocks are a leading indicator and it is always troublesome to see them decline by this degree.
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