Global markets: US, European stocks drop as Credit Suisse renews banking crisis fears

The US and European stock markets fell on Wednesday as fears over banking crisis resurfaced.

Investors’ fears over banking crisis increased after Credit Suisse’s biggest shareholder Saudi National Bank refused to raise stake beyond 10%, citing regulatory issues.

Bank stocks across Europe and the US edged lower.

Efforts by regulators in the US and Europe to assuage contagion fears after collapse of Silicon Valley Bank and Signature Bank have failed to calm investors.

US shares

US shares pared its losses late on Wednesday with the Dow and S&P 500 closing in the negative and Nasdaq marginally higher.

The S&P 500 fell 0.7% at 3,891.93. The Dow Jones Industrial Average fell 0.9% at 31,874.57.The Nasdaq Composite gained 0.1% to 11,434.05.

After the closure of Silicon Valley Bank and Signature Bank, investors believe that the US Federal Reserve will slow the pace of interest rate hikes at its meeting next week.

European equities

European equities plunged on Wednesday with Credit Suisse hitting a record low.

The pan-European STOXX 600 index declined 3% and the banks sector index plummeted7.1%.

Credit Suisse’s shares tumbled 24.2%. During the intraday session, the stock of Switzerland’s second biggest bank was down more than 30%.

Barclays, Commerzbank, BNP Paribas and Societe Generale were down between 7% and 12%.

Germany’s DAX fell 3.3% at 14,735.26. France’s CAC 40 declined 3.6% at 6,885.71. 

Britain’s FTSE 100 dropped 3.8% at 7,344.45.

The euro fell 1.8% against the US dollar, its steepest single-day dip since March 2020.

Investors are now keenly awaiting European Central Bank (ECB) decision on interest rates on Thursday. 

Asian shares

Asian shares gained on Wednesday after tracking US stocks’ rally on Tuesday.

The MSCI index of Asia-Pacific shares, outside Japan, rose 1%.

The Shanghai Composite Index rose 0.6%.

Hong Kong’s Hang Seng index rose 1.5%.

Japan’s Nikkei was flat.

Australia’s S&P/ASX 200 index surged 0.86%.

Crude oil

Oil prices fell 5% on Wednesday to their lowest since December 2021.

Brent crude declined $3.76, or 4.9%, to $73.69 a barrel. US West Texas Intermediate crude (WTI) was down $3.72, or 5.2%, at $67.61.


Gold prices rose as investors turned to safe haven assets. US gold futures added 1.1% to close at $1,931.30.


Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.

Take the test

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button