The banking sector falls back on the stock market
The respite was short-lived: despite the bailouts from the Swiss and American authorities, the banking sector fell back on the stock exchange yesterday, dragging all stock exchanges into the red. As throughout the week, concerns are primarily focused on Credit Suisse in Europe, which lost nearly 10%, and First Republic in the US, which lost 20%. The European banking index fell 2%, extending its losses to 11% for the week.
The trend took over the European indices, which had opened up anyway: around 2 pm, Paris fell sharply by 1.11%, Frankfurt by 1.04%, Milan by 1.33%, London by 0.67%.
Wall Street also fell by 0.48% on the Dow Jones index, by 0.14% on the S&P index, even if the Nasdaq, with its strong technological coloring, took 0.30%.
Eleven major US banks pledged Thursday to come to the rescue of First Republic, depositing $30 billion in this institution to boost its liquidity and prevent the situation from escalating after the failures of Silicon Valley Bank, Signature Bank and Silvergate last week . This had brought him a brief respite on the stock market on Thursday (+10%).
An effort welcomed by the US Federal Reserve (Fed), the Treasury and two financial regulators, while investors are scared by a possible risk of contagion to other banking institutions.
Bank failures across the Atlantic have rekindled the specter of the 2008 financial crisis, which had destabilized the global economy.