European banking shares fell following Donald Trump's victory in the race to the White House, with valuations wilting on concerns ranging from Chinese and Mexican exposure to the sector's unfinished business with U.S. regulators.
Spanish banks BBVA (BBVA) and Santander (SAN) , which both have significant operations in Mexico, were among the first to topple, and were down nearly 10% each in early trade. Italian banks also plunged, with Banca Monte dei Paschi (BMDPY) recently down almost 6% on concern market uncertainty following Trump's victory could jeopardize a rescue rights issue worth up to €5 billion ($5.6 billion). UniCredit was recently down 2.8%.
HSBC was among the biggest fallers in the London banking sector on Wednesday. The stock fell by around 3% after the opening bell and was down by around 1.8% in mid-morning trading, at 611.2 pence ($7.63). The SSE Composite, China's benchmark domestic stock index, fell by nearly 2% during the Asia session but eventually closed 0.6% lower at 3,128.4.
HSBC is heavily exposed to China, a nation that could face economic pressures as a result of Trump's victory, after the soon-to-be 45th U.S. president threatened to designate the world's second- largest economy as a currency manipulator and apply heavy tariffs to imports from the nation.