Credit Suisse collapses by nearly 20% in the stock market and affects the rest of European banks
The Ibex 35 is again having a clearly negative day given the turmoil Credit Suisse is recording in the stock market, after which banks are once again leading Selective waterfalls down more than 9%.
Specifically, Ibex 35 Edge was at 8800 points mid-session, despite the fact that it remained above the 9,100 integer at the open. Thus, at 12:00 pm, the Spanish Stock Markets Selective Index was trading at 8,817.70 points, which represents a decrease of 3.73% compared to Tuesday’s close.
Minutes before the half of the session, selective trading took place at a minimum of 8778.9 points, which means a by 4.15% compared to the previous close.
Again, Banco Sabadell is the most bearish entity
The day was once again marked by the fall of the six listed Spanish banks. Once again, Banco Sabadell was the “red lantern” of the banks, as it was the entity that fell the most, down 8.96%. The Catalan-origin entity was the bank that sank the most after the decision of Silicon Valley Bank and Signature Bank.
Behind Sabadell was BBVA (-7.38%), Bankinter (-6.95%), Banco Santander (-6.47%), Meliá (-6.14%), CaixaBank (-5.98%), ArcelorMittal (-5.46%), Inditex (-5.35%) %) %) and Unicaja Banco (-5.33%).
Of the 35 companies on the selective list, only Iberdrola posted a positive progression towards 12:00, an increase of 0.64%. Among the companies that fell less were Logista (-0.45%), Rovi (-0.50%), Acciona Energías Renovables (-0.63%) and Telefónica (-1.00%).
The declines in the banking sector occurred in parallel to the turbulence recorded in the rate of the Swiss bank Credit Suisse. The financial entity recorded a decline of more than 20% this Wednesday after its main shareholder, the National Bank of Saudi Arabia, refused in the Anglo-Saxon press to contribute more capital to the entity, because it would exceed the participation of 10%, which means that it refuses, referring to regulatory reasons. .
Credit Suisse records these issues in its list A week after it reported that it had delayed the release of its 2022 annual report after receiving notice of technical issues from the US financial regulator. Subsequently, the entity acknowledged that it had discovered a “material weakness” in the internal control of financial information.
The falls are not limited to Ibex, as the rest of the large European markets have seen a similar development. Germany’s DAX was down 3.04% in the middle of the session, while France’s CAC 40 was down 3.53% and Italy’s FTSE MIB was down 3.70%. Thus, the Euro Stoxx 50 fell by 3.35%, while the British FTSE 100 fell by 2.45%.
in the commodity market, The price of a barrel of Brent oil fell to $76.311.42% lower, while West Texas Intermediate traded at $70.21 a barrel, down 1.54%.
The yield in the secondary debt market for the Spanish 10-year bond was set at 3.366%, from the 3.484% it closed on Tuesday. Thus, the risk premium offered to investors in Spanish debt compared to German debt increased by 3.4 points in the middle of the session, to 109.8 basis points.
In the currency market, the value of the euro fell by 1.10% against the dollar, losing the level of $1.07 per euro. Thus, the exchange rate in the market has reached 1.0616 dollars.
