The drop in banks’ share prices “is a reflection of movements in the pound, which is, in turn, a reflection of policy announcements made on Friday,” Morningstar Inc. senior equity analyst Michael Wu said by phone.
Shares of Europe-focused-lenders HSBC and Standard Chartered fall in Asia trading, tracking the pound’s drop to a record low versus the dollar amid UK’s plan to carry out more tax cuts.
The bulk of the currency’s slide on Monday took place in a frantic 20-minute selloff, evoking cries of a flash crash by traders HSBC drops as much as 8.3% in Hong Kong, the most since April 2020; Standard Chartered falls as much as 8.2%, the most since March 2020.
