According to @business, European bank stocks retreated on Friday after loan issues at a couple of US regional banks hit sentiment and raised concerns about the credit market, source: Bloomberg. The selloff reflects investors’ growing caution toward credit exposure within the banking sector as credit risks resurfaced, source: Bloomberg. Market focus centered on loan performance at US regional lenders as a driver of European financials’ downside during the session, source: Bloomberg.

According to The Kobeissi Letter, Capital One's consumer credit card charge-offs rose to 6.35% in February, marking the highest level in over 13 years, which could indicate financial strain among consumers. Similarly, Discover Financial reported charge-offs at 6.03%, the highest since at least 2011. These figures suggest potential risks in the credit market, which traders should monitor closely for potential impacts on financial sector stocks.

According to The Kobeissi Letter, US companies' 30+ day delinquencies surged to $29 billion in Q4 2024, marking the highest level in at least eight years. Over the past five quarters, delinquencies have increased by approximately $8 billion, or 38%. This figure excludes loans from direct lenders and private credit, indicating potential additional unreported financial stress. Such a rise in delinquencies could affect credit markets, influencing interest rates and lending conditions, therefore traders should monitor these trends closely.