Global market updates: US stocks slide as banks collapse, investors await Fed’s next move

The US central bank is expected to hike rates by 25 basis points on Wednesday.

The S&P 500 closed at 4,119.05, down 48.82 points, or 1.17%. The Dow Jones Industrial Average closed 365.40 points, or 1.09%, at 33,680.41. The Nasdaq Composite lost 132.49 points, or 1.11%, to 12,077.29.

American regional banks increased losses following the seizure and auction of First Republic Bank. Among bank stocks, PacWest Bancorp, Western Alliance Bancorp and Comerica Inc. fell with

US Treasury yields fell on concerns that the government could run out of cash without raising the debt ceiling by June. The yield on the 10-year Treasury fell 13.3 basis points to 3.441% from 3.574% late on Monday.

Currencies

The US dollar fell to 136.69 JPY from 137.48. The euro rose from $1.0970 to $1.1001.

Canada

The Toronto Stock Exchange’s S&P/TSX Composite Index closed down 207.54 points, or 1%, at 20,407.56.

Europe

Europe’s stock markets fell on Tuesday, led by energy stocks, ahead of a key interest rate decision from the European Central Bank.

The pan-European STOXX 600 index fell 1.2%, closing at its worst level since early April.

Oil and gas stocks fell 4.5%, their lowest close in over a month.

The ECB’s decision on monetary policy is expected on Thursday.

Britain’s FTSE 100 fell 1.3% to close at 7,773.03. Germany’s DAX closed down 1.2% at 15,726.94. France’s CAC 40 closed down 1.5% at 7,383.20.

Asia

Asian shares rose on Tuesday.

Hong Kong’s Hang Seng index was up 0.2% at 19,933.81. South Korea’s benchmark Kospi gained 22.86 points, or 0.91%, to close at 2,524.39. The Shanghai Composite was closed for a holiday.

Japan’s Nikkei 225 closed up 0.1% at 29,157.95.

Markets were up in Taipei, Kuala Lumpur, Singapore and Manila.

Australia’s S&P/ASX 200 index closed down 0.9% at 7,267.4 points. New Zealand’s benchmark S&P/NZX 50 index ended the session up 0.3% at 12,0.37.8.

oil prices

Oil prices fell on a US bond default, weak economic data from China and expectations that the US and Europe will raise interest rates again this week.

Brent crude for July delivery fell $3.99 to $75.32 a barrel on Tuesday.

The benchmark US crude for June delivery fell $4 to $71.66 a barrel.

bullion

Gold for delivery in June rose by $31.10 to $2,023.30 an ounce. Silver for July delivery rose 39 cents to $25.62 an ounce.