Effects financial earthquake The developments as a result of the bankruptcy of Silicon Valley Bank continue to be felt in the Spanish economy. HE mountain goat 35 It ended on Monday at 8,958, below the 9,000 mark., after losing 3.51% this Monday and 4.8% since Friday. The Spanish selective index falls below 9,000 points for the first time since January 26, under the weight of the decline in the Spanish banking sector. Major Spanish banks have lost more than 11% on average since Friday, March 10. It has been revalued by 21.56% since the beginning of the year. until that day, it acted with the expectation that the European Central Bank’s interest rate hikes would continue and increase over time.
action Sabadell Bank lost 16.38% After it has grown 42.86%, its value; Banco Santander, 11.45% After increasing 32.28%; BBVA, 11.42% After gaining 26.30% value; Caixabank lost 8.06% After the 9.70% increase; Bankinter 12.40% After winning 5.95% and Unicaja Banco fell 10.11 percent after the stock market value grew by 12.26%.
Sabadell, the most punished entity
The most notable case is the Banco Sabadell case.; The Catalan asset is down more than 11% on the stock market after rising more than 36% this year. It has become the Spanish bank that has lost the most value in the market since last Friday, the day when Silicon Valley Bank was declared bankrupt. Darío García, an analyst at XTB, points to the possible investment undertaken by this Catalan establishment as the reason for this huge drop. The bank, headed by Josep Oliu, announced in February a possible reinvestment of 3.5m euros in bonds with a maturity of less than a year. These more liquid bonds are the financial instruments most affected by interest rate hikes. There is no certainty that this operation was carried out.but what the business publishes.
García also points to the price effect: the percentage change in Banco Sabadell’s share is larger due to its lower price (1.10 euro) compared to other stocks such as Banco Santander (€3.36). García also points out that no bank is predicted to make a mistake similar to that of the Bank of Silicon Valley: covering interest rate hikes with swaps.
falls in the rest of Europe
HE The rest of the European stock markets are also not immune from this financial shock.: German DAX down 3.04%; French CAC 40, 2.90%, Italian FTSE MIB, 4.03%; Euro Stoxx 50, 3.14%; and the British FTSE 100, 2.58%. By values, Italian bank Bper Banca or Germany’s CommerzBank and Deutsche Bank, as well as Dutch ABN Amro and ING, experienced the most significant declines.
Gentiloni seeks tranquility
Paolo Gentiloni, European Commissioner for Economic and Monetary Affairs, assured on his behalf. don’t see a “specific risk of contamination” For European banks, meanwhile, credit rating agency Moody’s stated that the European banking sector “probably” will not record any losses in its bond portfolios in the face of the turbulence created by this intervention.