1132 GMT - The cost of insuring European bank bonds against default using credit default swaps rises due to fears that an economic slowdown in the eurozone following last week's U.S. tariffs could impact banks' profitability. "The 20% tariffs on imports from the eurozone could shave off between 60 basis points and 120bps off [eurozone economic] growth," Morgan Stanley analysts say in a note. BNP Paribas's 5-year credit default swap spread climbs 4 basis points to a 17-month high of 62bps, S&P Global Market Intelligence data show. Commerzbank 5-year CDS spread rises 6bps to 68bps, a high last seen 15 months ago. (miriam.mukuru@wsj.com)
(END) Dow Jones Newswires
April 07, 2025 07:32 ET (11:32 GMT)
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