European equities suffer worst quarter versus US since 2003

Banks worst hit

European equities are trailing US stocks by the largest amount since 2003 in the first quarter of this year, with banks in the region heading for their worst quarter since 2011.

Last year, European stocks beat US equities by the largest amount in a decade, but the beginning of 2016 has seen the S&P 500 index erase its annual drop in little more than a month. Meanwhile, the Stoxx Europe 600 index is on track for a quarterly loss of 6.7%, with all but three sectors falling in value. Despite additional stimulus measures announced earlier this month by the European Central Bank, European banks have suffered on concerns negative interest rates are consuming their remaining profits. According to Bloomberg, more than a third of lenders have dropped at least 20% i...