The European stock markets closed this Wednesday with great losses, motivated by the collapse of the credit suisse bank, which revived fears about global financial stability, after the bankruptcy of the US Silicon Valley Bank (SVB). The Paris Stock Exchange lost 3.58 percent, that of Frankfurt 3.27 percent, that of London 3.83 percent, while Milan fell 4.61 percent and Madrid 4.37 percent. The European Banking Sector Index (Stoxx 600 Banks) tumbled nearly 7 percent.
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Shares of Credit Suisse fell the most in its history on Wednesday, despite attempts by the head of Switzerland’s second-largest bank to reassure investors in a feverish market as the banking sector falters. The action of the entity, considered as the weak point of the red bank in switzerland it lost 30 percent and reached a record low of 1.55 francs (1.66 dollars), despite the intervention of its president, Axel Lehmann, to reassure the markets.
At the close of the zurich Stock Exchange, the drop was 24.24 percent, with a market capitalization of just under 6.7 billion Swiss francs (about $7.2 billion). Asked if the bank needs help from the government, he replied that this «is not a problem» since the bank has «solid financial ratios.»
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But his statements failed to calm the markets. The Credit Suisse collapse occurs after the bankruptcy of the Californian bank Silicon Valley Bank (SVB) by a wave of massive customer withdrawals that left the establishment struggling to fend for itself.
«It seems more and more investors are looking at CS (Credit Suisse) as the next most likely domino» to fall,» he said. Neil Wilson, Finalto analyst. But if Credit Suisse has to deal with «existential problems,» they are other kinds of difficulties, in his view. «It’s really too big to go bankrupt,» she said.
Other places
The London Stock Exchange fell 3.83 percent on Wednesday, its biggest decline since the Russian invasion of Ukraine more than a year ago, as investors feared a new financial crisis amid recent turmoil in the banking sector.
a speaker of London Stock Exchange (LSE), The London Stock Exchange, told EFE that the previous biggest drop in the FTSE-100, which groups the top one hundred companies by market capitalization, was on February 24, 2022, when it fell 3.88 percent with the start of the War in Ukraine.
For its part, the selective frankfurt It closed today with a drop of 3.27 percent, dragged down by the heavy losses of the banks after the Swiss bank Credit Suisse collapsed on the stock market because its main shareholder is not going to inject capital.
Respite from a day in the USA
The US banking sector returned to the red on Wednesday, with sharp drops in almost all entities, and particularly in regional banking, which last Monday was the most affected by the closure in previous days of the Silicon Valley Bank and Signature Bank.
The brief respite provided by the shock measures announced by the President Joe Biden It only appeared one day, and today the spectacular fall of the historic Credit Suisse (which plummeted 23 percent) abandoned by its main Saudi shareholders has once again affected this side of the Atlantic.
The financial sector, which suffered a rebound of 2.19 percent on Tuesday, fell 3.09 percent earlier, only surpassed in declines by the energy sector.
The falls of the big banks are widespread: JP Morgan it lost 4.4 percent; Goldman Sachs, 4.76 percent; Citigroup, 4.95 percent; Wells Fargo, 3.29 percent, and Bank of America, 2.16 percent.
non-bank financial companies such as amexpress (-4.03 percent), Travelers (-3.37 percent) and Visa (-1.08 percent) did not escape the fears among investors in the morning, which, moreover, also spread to the majority of sectors and companies on a depressing morning on Wall Street.
Even worse was the regional bank, the protagonist on Monday of enormous falls: First Republic fell below 13 percent, after seeing its rating downgraded by S&P, and PacWest Bancorp did so below 14 percent
*With information from agencies