Credit Suisse shares lead the decline in global stock exchanges, after falling by 30%
The American and European stock exchanges witnessed stormy trading on Wednesday, in the wake of the Saudi National Bank’s announcement to refrain from increasing its stake in Credit Suisse Bank, for the Swiss bank to lose nearly a third of its value, and to record its lowest level ever, incurring heavy losses to American and European stocks, due to the growing fears of investors. From defaulting more banks, during the coming period.
Although Credit Suisse stock recovered some of its recovery, following the announcement by the Swiss National Bank (Central) of its readiness to help if necessary, and the rise of some other stocks, stocks of financial institutions were unable to erase their losses, leaving the Dow Jones Industrial Average and S&P 500 in the red zone. , while the Nasdaq barely managed to sneak into the green zone.
During trading on Wednesday, the Dow Jones Industrial Average cut its losses, which exceeded 725 points at some moments, to end the day down by 0.87%, representing only 280 points.
The S&P 500 lost less than three-quarters of a percentage point, while the Nasdaq was up 0.05%.
In the coming days, eyes are looking forward to the Federal Reserve’s expected decision next Wednesday, and for the first time in years, the possibilities of raising and fixing interest rates are divided almost equally, as is the case when throwing a coin in the air, while trying to predict whether it will fall on the picture or the writing.
In Europe, stocks recorded their worst one-day performance in more than a year, on Wednesday, with renewed disposals of bank shares, after increasing investor concerns about the pressures on the sector, following the collapse of Credit Suisse to a new record high. .
The Stoxx 600 index ended the day’s trading down 3%, after the banking sector index fell 7.1%, which in turn recorded its largest one-day drop in more than a year.
The banking indices in Spain and Italy fell more than 4% each, as the efforts of regulators and executives failed to allay investor fears of the collapse of other banks, following the sudden collapse of Silicon Valley Bank, according to Reuters.
In connection with the matter, oil prices plunged more than five dollars a barrel at the end of trading today, Wednesday, to reach the lowest level in more than a year, as concern about the Credit Suisse financial bank caused panic in global markets, and dispelled hopes for a recovery in Chinese demand for oil.
Early signs of a return to market stability faded after the bad news about Credit Suisse.
Brent crude fell by $3.76, or 4.9%, to settle at $73.69 a barrel, and US West Texas crude fell by $3.72, or 5.2%, to settle at $67.61.
The decline in the two benchmarks at some moments on Wednesday reached more than 7%.
Both benchmarks fell more than 4% yesterday, Tuesday, under pressure from fears that the collapse of Silicon Valley Bank last week, as well as the failures of other US banks, would cause a major financial crisis that would weigh on fuel demand.
