CNBC: European stocks plummet amid US banking crisis
The stock markets of European countries collapsed during trading on Monday, March 13, writes CNBC. The fall occurs against the backdrop of the emerging banking crisis in the United States.
The pan-European Stoxx 600 index fell to 440.8 points (minus 2.86 percent) at the bottom point, one of the leading UK and European FTSE 100 indices fell to 7549.7 points (minus 2.5 percent), and the most important German stock index DAX at the time of writing was 14,988 points (minus 2.88 percent).
Strongly collapsed shares of major European banks, in particular, Deutsche Bank – on the XETRA stock exchange, quotes fell by 7.84 percent, to 9.83 euros per share. At the same time, UniCredit’s shares on the Italian Stock Exchange fell 7.75 percent to 17.18 euros, trading in the bank’s securities was halted. Shares of Swiss Credit Suisse lost more than 15 percent, reaching an all-time low. A similar dynamic is observed with the securities of the British HSBC, which bought the local division of the bankrupt American Silicon Valley Bank (SVB UK) to save the bank from bankruptcy.
In parallel with the fall in world markets, the Russian stock market is also declining. The Moscow Exchange index at the time of writing fell by 0.73 percent. Following the fall in oil prices, shares of companies in the oil and gas sector are falling.
The turbulence in global markets began amid the announcement of the bankruptcy of Silicon Valley Bank (SVB), which is one of the top 20 US banks in terms of assets. The collapse of the credit institution caused fears of a new financial crisis in the world markets. Nevertheless, the US authorities do not allow a repeat of the 2008 crisis, pointing out that since then the country has created a system to counter such a development of events. In the near future, US President Joe Biden will make a special address. He should describe the steps the White House will take to deal with the banking crisis.
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