European Bank Stocks’ Mideast Selloff Is Overdone, JPMorgan Says

European investment banks’ selloff on geopolitical tensions in the Middle East looks excessive, according to analysts at JPMorgan Chase & Co.

Banks were among the worst performing sectors in Europe on Monday and Tuesday, with the Stoxx 600 banks index falling more than 7% in the steepest two-session drop since April. JPMorgan analysts led by Kian Abouhossein wrote in a Tuesday morning note that markets seem to have overreacted, particularly on lenders such as Barclays Plc, Deutsche Bank AG, HSBC Holdings Plc and Standard Chartered Plc.