Widespread declines in the stock market on Wall Street this Thursday have affected Asian markets and will also reach European stock markets this Friday. HE mountain goat 35 Silicon Valley Bank (SVB) experienced a strong 2.4% correction at the opening of the session due to financial difficulties.An American bank that collapsed 60% this Thursday after announcing a $2,250 million capital increase and admitting massive losses in its asset portfolio that affected the entire US banking sector. Also, the deposit liquidation announced this Thursday by Silvergate, a bank specializing in cryptocurrency transactions, has hit banks hard on the US stock markets. For this reason, the banking sub-index of the S&P 500 has reached the point of rising to 7.5% in the last day.
SVB is a focused organisation. Financing of start-ups and entrepreneurship projects in Silicon Valley (California), The largest entrepreneurial pole of technology-based companies in the world. “Given the liquidity problems the organization has noticed, many companies and funds are withdrawing their investments. A possible bailout is even being considered by the SEC,” says Óscar Martínez, Norbolsa deputy director of portfolio management. This analyst indicates that the capitalization of the asset is about $6,000 million. “Compared to Spanish bands, the size of this company is similar to Unicaja,” he says.
Valuations of cryptocurrencies were also affected by this bank run. Bitcoin, the most popular cryptocurrency It’s up to 10% and is currently trading at around $20,000 per unit.. ethereum is down 9% to trade at $1,400. major US banks, including Bank of America, Wells Fargo and JP Morgan They fell at least 5%, Asian bank titles also fell sharply this morning. European stock markets are also experiencing significant declines. Eurostoxx lost 1.5% at the opening, Frankfurt 1.4% and London 1.6%. The French CAC 1.41 and Milan stocks lost 1.9%.
The combination of the likely higher-than-expected economic impact of interest rates and the resulting wave of declines in US banks drove the banking sector down in the Ibex 35. In the early stages of the session this Friday The biggest decreases were for Santander (-6.02%), Sabadell (-5.83%), Unicaja (-4.89%), BBVA (-4.23%) and Bankinter (-4.21%)..
Standing alongside the Ascensions Red Eléctrica (+0.67%), Naturgy (+0.33%) and Iberdrola (+0.17%). The rest of the European stock markets also opened lower: London and Frankfurt fell 1.5%, Paris and Milan fell 1.75% and 2.1% respectively.
US unemployment data expected
This Friday the markets are also stable Looking forward to hearing about the official employment report in the United States this Friday.After Federal Reserve (Fed) chairman Jerome Powell suggested in Congress of the North American nation that the amount of the next rate hike, scheduled for March 22, has yet to be decided.
Likewise, the barrel price of Brent quality oil, The Old Continent reference was down 0.61% to $81.09.Texas was trading at $75.08, down 0.85%.
In the foreign exchange market, The value of the euro against the dollar was determined as 1.0598 ‘green banknotes’.The Spanish risk premium stood at 101 basis points and the required interest on the ten-year bond stood at 3.518%.