Lloyds Banking Group PLC (LSE:LLOY) shares fell as much as 6% in early Monday trading, as fears of a global recession triggered by President Trump’s sweeping new tariffs rattled financial markets.
While Lloyds is more focused on the UK economy than its international peers, it remains highly sensitive to broader economic sentiment.
Analysts at Deutsche Bank said European banks have been hit hard because they tend to rise and fall more sharply with the economy - and this time, the mood has turned fast.
Investor optimism had driven bank share prices up earlier this year, leaving them vulnerable when confidence suddenly evaporated following Trump’s announcement.
For Lloyds, concerns about slowing global growth and potential knock-on effects for the UK economy, including weaker lending and higher defaults, weighed heavily on its stock.
The shares recouped some of their losses to trade down 2.28p to 62.72p for a fall of 3.5%.