As Credit Suisse leads banking equities on a wild journey lower, European shares close down 3%.
According to Eikon statistics, banking stocks saw their lowest session since Russia started its full-scale invasion of Ukraine on February 24, 2022, a decline of 7%.
As mining stocks lost 5.6%, the oil and gas industry dropped 6.7%.
After Saudi National Bank, the bank's largest lender, stated it would be unable to provide it with more financial assistance, Credit Suisse slid to the bottom of the blue-chip index.
After plunging as much as 30% earlier in the day, its shares dropped 24% to close.
CEO Ulrich Koerner stated, "Our capital, our liquidity foundation is very, very robust," in an interview with CAN that was cited by Reuters.
"We essentially meet and exceed all regulatory criteria,"
Koerner continued, "We generally meet and exceed all regulatory criteria.
As the banking industry staged a tiny comeback on Tuesday, the Credit Suisse decline triggered a larger sell-off to resume. Among the banks with significant decreases were Deutsche Bank, Commerzbank, Societe Generale, and BNP Paribas.
Due to the significant losses, trading in a number of bank equities, including Credit Suisse, was briefly suspended in the morning. Societe Generale, Commerzbank, UBS, and Deutsche Bank all declined to comment.
Trading was brisk in the Asia-Pacific markets overnight and on Wall Street on Tuesday as U.S. bank equities recovered on hope that the possibility of a ripple effect from the failure of Silicon Valley Bank had been curbed.
But, Wednesday saw a decline in U.S. markets as fears returned.
Jeremy Hunt, the UK's finance minister, published his "Spring Budget" in the meanwhile.
Meanwhile, the "Spring Budget" presented by UK Finance Secretary Jeremy Hunt extends the gasoline price decrease and energy support measures. Teachers, government employees, train workers, and junior physicians all on strike over wages and working conditions at the same time.
As gilt rates, mortgage rates, and inflation decline, Hunt added that the British economy is "proving the critics wrong" and would escape a technical recession.
European stock prices fell.
The global banking crisis was restarted after investors pulled out of Credit Suisse, causing Europe's Stoxx 600 index to temporarily close 3% down.
The session finished with European banks down 7%, while Credit Suisse plummeted 24% as its biggest supporter announced it would stop giving it financial support. The stock dropped and reached a new all-time low.
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