© Reuters.
Investing.com – Shares traded on the Swiss Stock Exchange on Friday, March 10, hit an all-time low as U.S. banking stocks sold off. At the moment, the quotes fell by 6.1% to 2.463 (about $2.65). By 13:07 Moscow time, the price of securities recovered to 2.526 Swiss francs ($2.72), but this is still 3.7% below the close of the previous trading session.
Papers of another Swiss bank – UBS – during the trading session on March 10 at a minimum fell by 5.43%. The sectoral index EURO STOXX Banks lost 4.89% at the moment.
Shares of European banks fell following the collapse in the US banking sector, writes RBC. So, according to the results of trading on Thursday, March 9, the index fell by 4.1%, which was the maximum one-day drop since mid-2020. Shares of Bank of America (NYSE:) fell 6.2%, Wells Fargo (NYSE:) – by 6.2%, JPMorgan Chase – by 5.4%. Papers of other major US banks also fell sharply.
The sell-off in the sector came on news of the difficulties of SVB Financial Group, the holding company of Silicon Valley Bank, which serves high-growth start-ups in the technology and life sciences industries.
SVB Financial announced an emergency sale of $21 billion in bonds from its portfolio, resulting in a loss of $1.8 billion. The financial company also announced its intention to place shares for $2.25 billion to raise funds to cover losses. As a result of trading on March 9, the shares of SVB Financial Group collapsed by 60.4%.
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Text prepared by Timur Aliev
