Global shares hit by jittery banks ahead of US payrolls

crude oil It was headed for its biggest weekly loss in five weeks on concerns about the prospect of a sharp interest rate hike in the United States, slowing growth and hitting fuel demand.

The yen erased earlier losses on the Bank of Japan, keeping stimulus settings steady, while the dollar declined against the Swiss franc ahead of US data.

The MSCI All Country Stock Index was down 0.5%, at its lowest level since mid-January.

In Europe, the STOXX index of 600 companies was down 1% from its lows as selling pressure eased and US stock index futures steadied.

SVB Financial Group, which does business as the Silicon Valley bank, sought to reassure tech clients on Thursday as its stock plunged as much as 60% to $1.8 billion due to loss-making bond sales. Was trying to raise money to fill the billion hole. Department.

Analysts said the Silicon Valley bank, whose shares were down more than 40% in premarket trading on Friday, questioned unrealized losses on bond portfolios among US banks and what it could mean for capital requirements.

The concerns spread through lenders in Europe.

The European Bank’s STOXX index fell 3.45% to its lowest level in more than a month, while Credit Suisse hit an all-time low.

Patrick Spencer, vice-chairman of equities at RW Baird, said, “I think it’s panic and it’s typical of the company.”

“We’re really taking advantage of panic-driven selling and we’re downgrading some of the regional banks,” he said.

US Labor Department data on non-farm payrolls was due ahead of the Opening Bell on Wall Street, and economists forecast payrolls were likely to increase by 205,000 last month, less than half of the 517,000 added in January .

“Anything over 300,000 will shut the doors on the market,” Spencer said.

ING Bank said US Federal Reserve Chair Jerome Powell has pointedly referred to Friday’s jobs data as a key driver, along with next week’s US inflation data, ahead of the Fed’s policy decisions on March 22.

Powell warned that rates could rise more quickly if data suggest that is necessary to tame inflation.

US stock index futures were mixed.

japanese excitement steady

The yen weakened and Japanese government bond yields fell after the Bank of Japan opted to hold stimulus settings steady, as expected at the last meeting of Governor Haruhiko Kuroda’s charge.

The benchmark 10-year JGB yield, which the BOJ pins within 50 basis points either side of zero, retreated sharply from that range to 0.445%. The yen rose 0.5% to 136.679 per dollar after declining 0.6%.

Japan’s Nikkei pared earlier losses to 1% after the central bank’s decision, but a selloff followed later in the session and the index closed 1.7%.

The US dollar was marginally weaker and the yield on short-end Treasuries was marginally weaker at 4.8264%.

Markets were pricing in a roughly 50% chance of a 50 basis point Fed hike this month, up from more than 70% a day earlier.

Bitcoin was down 3% at $19,761 as the demise of Silvergate weighs on the broader mood in digital assets. Crypto-focused lender Silvergate said it is shutting down.

Brent crude futures declined 0.75% to $80.99 a barrel, while gold rose 0.14% to $1,833 an ounce.

(Reporting by Hugh Jones, Tom Westbrook, Kevin Buckland and additional reporting by Scott Murdoch. Editing by Simon Cameron-Moore and Kim Coghill and Chizu Nomiyama)

The text of this story is published from a wire agency feed without any modification.