Ibex opened the week trading at 35 weeks with fresh declines as U.S. authorities stepped in to stabilize the banking system. The rescue package for Silicon Valley Bank and the closing of another lender, Signature Bank, aimed to curb global panic. The Selector fell 0.14 percent at the open Monday, then surged to around 4 percent as the banking selloff accelerated, wiping out about 9,000 points in just three hours. Banco Sabadell suffered the sharpest decline among major lenders, dropping 11.04 percent, followed by Bankinter at 7.99 percent lower, Santander down 7.62 percent, Unicaja at 7.26 percent, CaixaBank near 6.84 percent, and BBVA around 6.74 percent.
By 9:25 a.m., the Madrid index hovered just above the 9,200 point mark after starting the session with roughly 9,272 integer points. Market traders anticipated continued pressure in the banking sector and watched closely for developments from the United States and the Eurogroup meeting scheduled for Monday.
In Washington, U.S. authorities directed the Federal Deposit Insurance Corporation to guarantee all accessible deposits at Silicon Valley Bank starting today. In London, the government and the Bank of England approved a private sale of Silicon Valley Bank UK Limited to HSBC UK Bank, part of HSBC Holdings, for one pound sterling. The deal aimed to restore confidence while preserving stability in the broader financial system.
The U.S. Treasury, the FDIC, and the Federal Reserve issued a joint statement clarifying that depositors would have access to all funds starting Monday, with no losses borne by taxpayers. Shareholders and some unsecured creditors would not be protected, and the reassurance was intended to stabilize public confidence in the U.S. banking system, according to remarks from US Treasury Secretary Janet Yellen.
Silicon Valley Bank, known for its extensive influence in the technology sector and a large client base of startups, faced liquidity and solvency concerns that led to the FDIC intervention late last week. Federal officials coordinated over the weekend to safeguard client funds using several different methods and formulations, aiming to secure liquidity while minimizing disruption for clients.
The market disruption in the United States and the potential macroeconomic impact of higher interest rates contributed to a broader decline in the Ibex 35 last Friday and carried into the opening of trading this Monday. The fear of tighter financial conditions and a cooling cycle in the banking sector weighed on equity markets across Europe.
The rest of European stock markets opened with declines exceeding 1 percent on Monday. EuroStoxx fell about 3.22 percent, Germany’s DAX declined 3.14 percent, Italy’s FTSE MIB dropped 4.31 percent, and France’s CAC 40 eased 1.30 percent. By contrast, Asian markets closed higher, with the CSI 1000 rising 0.50 percent, the Shanghai Composite up 1.20 percent, and the Hang Seng advancing 1.85 percent. Oil prices also shifted: Brent crude rose 0.3 percent to $83.06 per barrel, while U.S. crude (West Texas Intermediate) gained 0.4 percent to $77.
In the currency market, the euro traded near 1.07 against the dollar, with the greenback’s value at about 1.0724. The yield on 10-year U.S. Treasuries eased to around 3.49 percent. In another corner of global markets, cryptocurrencies showed resilience with Bitcoin up roughly 3.6 percent, Binance Coin gaining over 6 percent, and ether strengthening about 2.36 percent. Solana, however, fell about 3.78 percent in early trading.