European banks ended their stock market with a crucis this Friday due to the crisis in the sector, following the problems of US banks and Switzerland’s Credit Suisse. As for the Spaniards, banks have reduced the value of the stock market by more than 20,000 million compared to the end of last week, when the crisis in this sector began. Ibex closed with 35 new losses, leaving 5.8% in just five days.
Credit Suisse once again caused a new decline. The bank recovered some of its losses yesterday after ending its request for a 50.7 billion euro liquidity channel from the Swiss National Bank. However, this Friday, its rival UBS closed its doors to seek a merger with the entity, one solution that analysts have outlined for the reputational and business crisis facing the country’s second-largest bank. Its shares fell by 8%.
In Spain, this led to a new red closure of all banks. In this case, Banco Santander was the hardest hit, with a 4.65% decline. BBVA lost nearly 3.5% on the day the bank held a shareholder meeting and defended the strength of its balance sheet against financial market turbulence. Sabadell fell by 3.14%. Bankinter and CaixaBank fell by more than 2% and Unicaja by 1.7%.
The week left a large pattern of volatility. Sharply expressed ups and downs according to the information that was happening around the US Bank and the Swiss Credit Suisse. Also on European stock exchanges. All banks in the euro zone closed the week with fresh losses on fears that the crisis of the Swiss unit was not closed with the help of the country’s central bank.
The European Central Bank’s (ECB) Banking Supervision Committee held an extraordinary meeting this Friday to analyze the financial turbulence of recent days and concluded that it sees no risk of contagion in the eurozone. Reuters agency. The institution has already told elDiario.es that “the purpose of this short ‘ad hoc’ meeting was to “exchange ideas and gather updated information on the latest developments in the banking sector”.
The US stock market also fell this Friday, with banks keeping the numbers in the red on Wall Street. In California, the aid program announced for First Republic Bank, with its competitors’ deposits, did not serve to reassure investors. The unit fell more than 26% in New York mid-session. Big banks leave more than 3%. Silicon Valley Bank, with government intervention, filed for bankruptcy to buy time to repay its debts.
Source: El Diario
