Recession Fears Fueled by US Lenders Batter Canada’s Banks
- Royal Bank of Canada drives losses among the Big Six
- S&P/TSX Commercial Banks index drops to lowest since 2021
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Canadian bank stocks slid the most in more than two years as the first round of earnings from US lenders weighed on the outlook for the financial sector amid growing fears of a recession.
The S&P/TSX Composite Commercial Banks Index, which tracks Canada’s eight largest lenders, dropped 3.8% Thursday, the biggest drop since June 2020, after JPMorgan Chase & Co. and Morgan Stanley posted results that pointed to deteriorating prospects for the world’s largest economy.