Wall Street began the day on Wednesday in red and the Dow Jones Industrials, its main indicator, lost 1.78%, in what is guessed as a new day of turbulence after the “bank contagion” that spreads to Europe, and specifically to the historic Crédit Suisse.
Ten minutes after the start of trading on the New York Stock Exchange, the Dow Jones lost 576 points, to stand at 31,826while the selective S&P 500 also fell 1.62% or 64 integers, to 3,890.25 points. The composite index of the Nasdaq market, in which the main technology companies are listed, added to the same trend and left 1.07% or 131.75 units, up to 12,205.25 integers.
(How the collapse of Silicon Valley Bank differs from the crisis of 2008).
For its part, Moody’s Investors Service lowered its outlook for the US banking system from stable to negative, citing massive withdrawals of deposits in Silvergate Capital Corp.., Silicon Valley Bank and Signature Bank, which led to the collapse of all three lenders in less than a week.
While federal regulators “announced that all SVB and Signature Bank clients will be redressed, the sharp and rapid decline in confidence among bank clients and investors that this move precipitated clearly highlights the risks in asset and liability management.” of US banks exacerbated by rapidly rising interest rates, Moody’s said in a research report.
(Private pension funds would not feel the impact of SVB bankruptcy).
Silicon Valley Bank.
EFE
What’s up with Credit Suisse
In Europe, the shares of Credit Suisse currently fall by 14% on the Zurich Stock Exchange, after having collapsed 30%on a day marked by the refusal of the Saudi National Bankits main shareholder, to give it more financial assistance, undermining investor confidence.
The shares of the Zurich bank, one of the 20 largest in Europe and one of the top 50 in the world, They are around 1.9 Swiss francs (1.95 euros)after having stood at a record low of 1.5 francs during the session (1.54 euros), when they had never been below 2 francs per ballot.
Credit Suisse.
EFE
Faced with this situation, swiss authorities and Credit Suisse are discussing ways to stabilize the bank, according to people with knowledge of the matter, after comments from its largest shareholder helped trigger the stock’s plunge on Wednesday.
Bank executives and government officials have discussed options ranging from a public statement of support to potential liquidity support.said the people, who asked not to be identified because they were private conversations.
Among the ideas being considered are the separation of the Swiss unit and a possible merger with its Swiss rival UBS Group AGalthough they warn that it is not clear which of these measures will actually be executed, if any.
(European Central Bank in trouble after Credit Suisse collapse).
As one of its effects, the London Stock Exchange It fell 3.83% this Wednesday, its biggest decline since the Russian invasion of Ukraine more than a year ago, due to investor fears of a new financial crisis amid the recent turmoil in the banking sector. The main London index, the FTSE-100it was left 292.66 points until it is in 7,344.45 integersin a session of losses for banks and companies of raw materials such as oil and mining, in which only six companies registered profits.
A spokeswoman for London Stock Exchange (LSE), The London stock market, told EFE that the previous biggest fall in the FTSE-100, which groups the top hundred companies by market capitalization, was on February 24, 2022, when it fell 3.88% with the start of the war in Ukraine.
(Oil prices, falling and plummeting on recession fears).
Meanwhile in USA, he Oftreasury department is actively reviewing the US financial sector’s exposure to Credit Suisse after the bank’s shares posted their biggest drop in a day, according to people familiar with the matter.
Treasury Department officials are working closely with the Federal Reserve and European regulatorssaid one of the people, who spoke on condition of anonymity. Spokesmen for the Treasury Department and the Federal Reserve declined to comment.
Meanwhile, the barrel of Brent oil for delivery in May, it was listed in London at $74.71, 3.48% less than at Tuesday’s close, amid fears in the market of a new financial crisis. The benchmark crude oil in Europe has lost 9.75% of its value compared to last Friday’s close, weighed down by fear of contagion among the banking sector from the collapse of the American Silicon Valley Bank.
Compounding those concerns was the plunge in the shares of Credit Suisse.
BRIEFCASE
With information from EFE and Bloomberg
