Global stocks hit two-month lows this Friday, March 10, while investors they disposed of bank papers for fear of contagion after a capital increase in the Silicon Valley Bankwith the figures of the US payrolls also in the spotlight ahead of the Federal Reserve meeting later this month.
MSCI World Stocks Index down 0.6%reaching its lowest level since mid-Januarywhile the pan-European STOXX 600 subtracts 1.6%.
All global stock exchanges they reflect losses of up to 3%, with the exception of 4: the S&P Lima, the Mexican S&P BMV IPC, the Israeli TA 35 and the Saudi Tadawul All Share (TASI).
He dax german loses 1.5%, while the IBEX 35 Spanish falls 1.7% and ACC 40 French 1.4%.
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On Thursday, the Silicon Valley Bank tried to reassure customers in the technology sector, since its shares plummeted 60% while trying raise funds to plug a $1.8 billion hole caused by the sale from a portfolio of bonds deficit.
The hole was uncovered with the presentation of its balance, which reflected a sharp drop in deposits. After this became known, investors chose to withdraw and the bank’s capitalization closed a third below what it was handling days ago.
The international banking system is strongly interrelated, which caused fear to break out in the sector and the indices that group the large banks underwent falls of up to 6% with recognized firms such as Bank of America, Wells Fargo, JP Morgan and Citigroup that reflected falls at those levels, figures that they had not faced since the pandemic.
The news added to the nervousness caused by the closure of Silvergate, a cryptocurrency-focused lender.
The concern extended to European lenders. The index of European bank shares sinks 4.2%, until its lowest level in more than a monthand Credit Suisse hit a record low.
Patrick Spencerby RW Baird, said that this is one more sign of how Rising borrowing costs and the end of cheap money are influencing markets. “We are taking advantage of panic-induced selling and revaluing some regional banks,” he said.
US stock index futures are trading slightly lower, although US stock index figures are likely to US nonfarm payrolls set the tone for the open on Wall Street.
He and in weakens after the Bank of Japan opted to keep stimulus stable in the last meeting of the governor Haruhiko Kuroda, as expected. The Japanese currency yields close to 1%, to 144.98 units per dollar.
The dollar trades stable and the short-term US Treasury yields weaken slightly.
Source: Ambito
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