Europe markets close 2.3% lower, bank stocks slide the most in a year after HSBC rescues SVB UK
Publishing timestamp: 2023-03-13 12:51:09
Summary
European markets closed sharply lower on Monday due to the fallout from Silicon Valley Bank's collapse, which sent banks to their worst day in over a year. Despite HSBC agreeing to buy the British arm of the troubled U.S. tech startup-focused lender, banking stocks suffered their worst session since March 2022. U.S. regulators also shut down New York-based Signature Bank in a bid to prevent further systemic risk. The fallout from Silicon Valley Bank's collapse is expected to lead to more liquidity regulation for banks, investor preference for larger banks over small ones, and greater competition for deposits leading to lower net interest margins. HSBC's share price fell following news of the acquisition, but analysts believe the fall is driven by profit-taking rather than fundamental weakness. The collapse of Silicon Valley Bank is seen as a byproduct of low interest rates from the Federal Reserve, according to investor Leon Cooperman. Regulators scrambled to avert a banking crisis over the weekend, with one key objective being "strengthening public confidence" in the U.S. banking system. European markets are expected to open higher on Tuesday despite the aftersh
Sentiment: NEGATIVE
Tickers: WISE-GB, .FCHI, CBK-FF, CBK-DE, .FTMIB, .IXIC, .SPX, CSG.N-CH, CSX1-FF, CS, .STOXX, .DJI, BALD.B-SE, HSBC, VMUK-GB, .FTSE, BG-AT, SBNY, 0RLW-GB, SAB-ES, 0I4P-GB, .GDAXI, HSBA-GB,
Keywords: hsbc holdings plc, signature bank, virgin money uk plc, stoxx 600, commerzbank ag, business news, bawag group ag, breaking news: europe, credit suisse group ag, united states,
Source: https://www.cnbc.com/2023/03/13/european-markets-live-updates-news-silicon-valley-bank-fallout.html