LONDON: Europe’s stock markets tumbled Friday, deepening opening losses as a global banks selloff accelerated before key US jobs data.
Frankfurt’s benchmark DAX index tanked 1.8 percent to 15,344.83 points, with Deutsche Bank slumping 10 percent and Commerzbank five percent.
The Paris CAC 40 lost 1.9 percent to 7,177.59, with BNP Paribas, Credit Agricole and Societe Generale down by between four and five percent.
London’s FTSE 100 index dropped 1.6 percent to 7,753.35 points, with shares in Barclays, HSBC, Lloyds and NatWest shedding as much as five percent.
“It looks like more contagion worries today in the banking sector. Plus, we have nervousness in payrolls data today. Not an easy finish to the week,” Strategic Alpha analyst Maurice Pomery told AFP.
Asian equities also tanked Friday following a rout on Wall Street, as signs of trouble at a regional US lender sparked concerns about the broader sector.
Lenders were sent into a tailspin Thursday after SVB Financial Group, which specialises in venture-capital financing, announced a stock offering and offloaded securities to raise much-needed cash as it struggles with falling deposits.
In another blow, crypto banking giant Silvergate said it planned to close as the sector faces more turmoil.
“Negative momentum from last night’s sell-off on Wall Street has permeated across global markets,” added Victoria Scholar, head of investment at Interactive Investor.
Europe stocks extend losses at open on Powell warning
The turmoil comes as traders nervously await the release of US jobs data later in the day, with many fearing that a forecast-beating figure could press the Federal Reserve to ramp up interest rates more than previously thought.
Markets remain unnerved after Fed boss Jerome Powell warned this week that a quicker pace of hikes might be required to fight inflation.
Comments
Comments are closed.