Financial Index of S&P 500 showed twelve days of decline on Tuesday, and this is the longest period on record, Bloomberg reports. In the beginning of this year many expected banking sector growth due to tax reform and interest rates hike. However, instead financials encountered higher pressure on behalf of flattening yield curve, declining customer confidence and US Fed annual stress test.

Yesterday index of financial sector S&P 500 fell by 0,4%. Citigroup shares lost 0,3%, Wells Fargo 0,8%.

Investors make a note of this and start pulling money out of large exchange traded funds that follow American financial companies. Financial Select Sector SPDR Fund has been losing money eight days in a row. This is the longest period in two years. In total about $1,8 billion or 6% flew out of fund.

All 35 US banks passed stress test, however, not all of them showed comfortable margins level. Moreover, US customer confidence fell in June. This can influence the pace of rate increases by central bank.

The same situation can be observed in Europe. Bank Index STOXX Europe 600 lost more than 18% compared to high levels in January.