The S&P 500 Banks Index has fallen more than 15% over the last two trading days, and if European and Asian trading is anything to go by there’s set to be selling Monday. With major U.S. banks reporting earnings Friday, including JPMorgan Chase, Morgan Stanley, and Wells Fargo, it’s set to be a volatile week for the sector.

Japanese banking stocks were in free-fall to start the week as the potential impact of tariffs damaged hopes of rate hikes as well as stoking recession concerns. At one point the Topix Banks Index was 17% down for the day, before recovering to trade 10% down. Shares in Japan Post Bank plummeted 10%.

Banks were also selling off in early European trading–the Stoxx 600 Banks Index was around 5% down shortly after the open, now down 19% so far in April. Spain’s Banco Santander was down 14.5% Monday, Germany’s Commerzbank was 10% lower and the U.K.’s Barclays fell 9%.

“Banks are seen as barometers for economic health, and given the steep losses, red lights are flashing about a looming global recession,” Hargreaves Lansdown analyst Susannah Streeter said.

Keefe, Bruyette & Woods analysts noted that last week’s selloff in U.K. bank shares wasn’t as damaging as the drop following the Brexit referendum in 2016. “We remain positive on U.K. domestic banks, where the recent selloff and current valuations suggest a dire outcome in a remarkably benign banking environment,” they added.

Write to Callum Keown at callum.keown@dowjones.com