US and European stock markets declined on Wednesday as fears of a banking crisis re-emerged.
Investor fears over a banking crisis escalated after Credit Suisse’s largest shareholder Saudi National Bank declined to raise its stake beyond 10%, citing regulatory issues.
Bank shares declined in Europe and America.
Efforts by regulators in the US and Europe to allay contagion fears following the collapses of Silicon Valley Bank and Signature Bank have failed to calm investors.
US share
US stocks trimmed their losses late on Wednesday with the Dow and S&P 500 closed in the negative and the Nasdaq marginally higher.
The S&P 500 closed down 0.7% at 3,891.93. The Dow Jones Industrial Average fell 0.9% to 31,874.57. The Nasdaq Composite rose 0.1% to 11,434.05.
Investors believe the US Federal Reserve will slow the pace of interest rate hikes at its meeting next week after Silicon Valley Bank and Signature Bank closed.
european equity
European shares fell on Wednesday as Credit Suisse hit a record low.
The pan-European STOXX 600 index lost 3% and the Bank Sector Index lost 7.1%.
Shares of Credit Suisse declined 24.2%. During the intraday session, the stock of Switzerland’s second largest bank was down over 30%.
Barclays, Commerzbank, BNP Paribas and Societe Generale were down between 7% and 12%.
Germany’s DAX closed down 3.3% at 14,735.26. France’s CAC 40 closed down 3.6% at 6,885.71.
Britain’s FTSE 100 fell 3.8% to close at 7,344.45.
The euro fell 1.8% against the US dollar, its biggest one-day decline since March 2020.
Investors are now eagerly awaiting the European Central Bank’s (ECB) decision on interest rates on Thursday.
asian stock
Asian shares edged higher on Wednesday after tracking the rally in US stocks on Tuesday.
MSCI’s index of Asia-Pacific shares outside Japan rose 1%.
The Shanghai Composite Index climbed 0.6%.
Hong Kong’s Hang Seng index rose 1.5%.
Japan’s Nikkei remained flat.
Australia’s S&P/ASX 200 index rose 0.86%.
crude oil
Oil prices fell 5% on Wednesday to their lowest since December 2021.
Brent crude fell $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.
bullion
Gold prices gained ground as investors turned to safe haven assets. US gold futures rose 1.1% to $1,931.30.
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