European stock markets relapse, renewed tensions on banks

European banks were again heckled on the stock market on Wednesday, dragging down all European indices, with new fears about the possible repercussions of bankruptcies of establishments in the United States.

Credit Suisse, one of the banks perceived as the most fragile in Europe, plunged 9.15% and reached a new historic low around 09:45 GMT. In France, BNP Paribas fell by 6.81% and Société Générale by 5.99%.

The boss of the main shareholder of the Swiss establishment, the Saudi National Bank, indicated in an interview with Bloomberg TV that he “absolutely did not intend” to help Credit Suisse in the event of a new request for liquidity “for several reasons in the beyond those which are regulatory and statutory”.

The main European indices lost between 1.25% in London and 1.85% in Paris when they only opened slightly lower.

Elsewhere in Europe, Unicredit lost 4.78%, Banca Sabadell 4.92%, Commerzbank 4.52%.

After having been in great difficulty on Friday and Monday, most European banking establishments regained some color on Tuesday and their prices rebounded, while remaining much lower than Thursday’s at the close.

Investors are worried about the risks of contagion after the bankruptcy of several American establishments, including the Sillicon Valley Bank, despite the measures taken by the American authorities and the assurances given by European leaders.