Stock prices in the US and Europe fell on Friday, as published US employment data raised the possibility of further aggressive interest rate hikes by the US Federal Reserve (FRS). Bank shares fell after US financial regulators suspended operations at Silicon Valley Bank (SVB) to protect depositors.
Wall Street’s main indexes rose on Friday before the SVB’s close caused them to fall again.
SVB is the first federally insured credit institution that has declared insolvency since 2020.
SVB, which specializes in venture capital financing, announced on Thursday a share offering and a sale of securities to raise funds amid declining customer deposits. The bank’s share price fell 60% on Wall Street on Thursday and trading was halted on Friday morning until the California Department of Financial Protection announced the suspension of SVB.
The closure of SVB contributed to the fall in the share prices of other US banks on Wall Street. “First Republic Bank” share price fell by 14.8%, while “Comerica” share price decreased by 5%.
On the London Stock Exchange, HSBC’s share price decreased by 4.7%, Standard Chartered’s share price – by 4.4%, Barclays’ share price – by 4.1%, and Lloyds’ share price – by 3.5%.
In the Eurozone, the share price of “Deutsche Bank” fell by 7.4%, and the price of “Societe Generale” share – by 4.5%.
The Dow Jones Industrial Average fell 1.1% to 31,909.64 on Friday, the Standard & Poor’s 500 fell 1.5% to 3,861.59, and the Nasdaq Composite fell 1.8% to 11,138.89 points.
London’s FTSE 100 fell 1.7% to 7,748.35 on Friday, Frankfurt’s DAX 30 fell 1.3% to 15,427.97 and Paris’ CAC 40 fell 1.3% to 7,220. .67 points.
WTI crude oil rose 1.3% to $76.68 a barrel in electronic trading on the New York Stock Exchange on Friday. “Brent” crude oil price on the London Stock Exchange rose by 1.5% to 82.78 dollars per barrel.
On the Dutch exchange “Title Transfer Facility” (TTF), the price of natural gas rose by 21.23% to 52.86 euros per megawatt hour on Friday.
The euro rose against the US dollar on Friday from $1.0586 to $1.0643 per euro, the British pound against the US dollar rose from $1.1922 to $1.2035 per pound and the US dollar against the Japanese yen fell from 136.15 to 135.09 yen per dollar. The euro fell against the British pound from 88.77 pence to 88.40 pence per euro.
