The pan-European STOXX 600 index fell 1.3%, with HSBC, Deutsche Bank, Barclays, Unicredit and Commerzbank down between 4.9% and 6.7%.

The European banking index hit a six-week low after US tech-industry lender SVB Financial Group launched a share sale to shore up its balance sheet due to declining deposits from start-ups struggling for funding.

All eyes are on US non-farm payrolls data due later in the day following volatility spurred by a sharp rise in US jobless claims and a decline in Wall Street bank shares, which tempered bets that the Federal Reserve may have to go big with this month’s interest rate hike.

February payrolls data, due at 1330 GMT, is expected to show an increase of 205,000 after January’s blowout 517,000 figure. Any surprise to the upside is seen strengthening bets for continued aggressive interest rate hikes.