European banks set for worst day since March 2023
** A gauge of European banks .SX7P is down nearly 4% and is set for its biggest one-day drop since March 2023, when the sector was rocked by the collapse of Credit Suisse and concerns over the stability of U.S. regional banks
** Drop in the sector comes after Societe Generale SOGN.PA cuts its guidance for its French retail net interest income and following meetings by central banks in top Western economies.
** The BoE cut rates for the first time since March 2020 and the Fed opened the door to a cut next month. Lower rates could weigh on interest margins, a key source of income for lenders
** Meanwhile, surveys show manufacturers across the United States, Europe and Asia turned in a weak performance last month, raising the risk of an underpowered global economic recovery
** SocGen leads fallers, down over 8%, followed by Asia-exposed HSBC HSBA.L, down 6.5% in London. Spain's Sabadell SABE.MC, along with Milan-listed Monte dei Paschi BMPS.MI and UniCredit CRDI.MI all down more than 4%
** By 1430 GMT, STOXX 600 Europe Banks .SX7P falls 3.9% after hitting a near 9-year high the day before. Index up 17.6% YTD. Region-wide STOXX 600 .STOXX down 0.8% on the day, up 7.3% YTD
Reporting by Danilo Masoni, editing by Alun John
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