The fear of a financial crisis is still latent in the markets after the bankruptcy of the US entities Silicon Valley Bank and Signature Bank , which have spread fear among investors. This Wednesday, the collapse of Credit Suisse shares on the Zurich stock market, which has reached 30%, has transferred fears from the US to Europe and the banks are reeling in the stock markets of the old continent. Four entities have been suspended from trading: Credit Suisse, Societe Generale, and the Italians Monte dei Paschi and UniCredit. The Spanish fell up to 11%, sinking the Ibex-35 by 4%.
SPANISH BANKS HIT: FALL MORE THAN 11%. At the moment, the one that is suffering the most on the Madrid stock market is Banco Sabadell, with more than 11.5% losses. It is followed by BBVA, with losses of 11%. And in the ranking of the most affected are also Bankinter and Santander, which are leaving around 7% on the floor.
WHAT IS WRONG WITH CREDIT SUISSE, THE SECOND LARGEST BANK IN SWITZERLAND?Hit by reputational scandals, collapsed risk firms and currently by the international banking crisis that has generated the bankruptcy of the SVB, Credit Suisse is going through its worst moment in its 167-year history, with no sign of recovery. The entity chains two years of millionaire losses. It also suffered last year the withdrawal of liquidity worth 123,200 million Swiss francs (126,000 million euros). Also at the beginning of 2022, the bank was the subject of an investigation published by a consortium of fifty global media outlets that accused it of having kept fortunes of people linked to corruption for decades. Until the capital increase last year, the largest shareholder was the American group Harris Associates, which left the bank after the capital increase, now controlled in more than 20% of its shareholding by investors from the Middle East. After the Saudi state bank is the Qatar Investment Authority (QIA), manager of the emirate’s sovereign wealth fund, with 5.03% of the ballots, and is followed by the Saudi Olayan group, linked to a wealthy family in the Arab country. , with 5% of the shares. The many problems that the bank is chaining, the protagonist of negative headlines for four years,Rumors of bankruptcy and that it will become a sort of “Swiss Lehman Brothers” are encouraged, although the country’s economic press is also considering the possibility that it will be absorbed by its main competitor in the country, UBS.
THE SPANISH STOCK MARKET COLLAPSE: FALLS ALMOST 4%. The Spanish stock market is being dragged down by the sharp fall of the banks due to the fear of a bankruptcy of the Swiss bank Credit Suisse, which is added to the collapse of the American Silicon Valley Bank, and this noon its main selective, the IBEX 35 yields 3.9% and loses the level of 8,900 points. At 12:00 the IBEX 35 loses 355.7 points, that 3.9%, and stands at 8,812.4 integers, after the sharp drop led by Credit Suisse, of more than 20% on the Zurich Stock Exchange, after advance the Saudi National Bank, its main shareholder, which will not give the Swiss entity any more financial assistance to face its difficult situation.
BIG LOSSES FOR EUROPEAN BANKING . Not only Spanish banks are plummeting in the markets, with Sabadell collapsing by more than -9% at this time, banks in the rest of the continent are also sinking into the parquets. In France, Société Générale is falling more than 11% and BNP Paribas more than 10%. In Germany, Commerzbank and Deutsche Bank fell 9% and 8%, respectively. In Italy, UniCredit yields 7.25%. And on the London stock market there are also significant falls for Barclays (-7.44%) or the financial company Prudential, which loses 10% of its value.
THE EURIBOR RISES MORE THAN ONE TENTH . The index to which most variable mortgages in Spain are referenced, the Euribor, has rebounded this Wednesday to close at 3,662, more than one tenth above the close of this Tuesday (3,509). This rise of 153 thousandths in one day is the highest so far this year, but it is preceded by the disaster on Tuesday, when the index plummeted more than three tenths in a single day.
THE EUROPEAN STOCK EXCHANGES, IN RED . The main European stock markets accumulate losses this Wednesday, weighed down by the falls in the financial sector. At this time, the IBEX is down -3.66% and is one of the most affected indices due to the weight of banks in its composition. The Parisian CAC loses -3.31%; the German DAX, -2.73%; and the London FTSE, -2.33%.
THE SPANISH BANKING SUFFERS . The collapse of Credit Suisse is dragging down the Spanish banks, which once again accumulate significant losses this Wednesday. The shares of the IBEX-35 banks suffer falls of between 5% and 7% at this time. The worst part is taken by Sabadell, whose titles fall more than 7%.