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IBEX falls 3.5% and banks collapse up to 12%


Banco Santander, BBVA, Caixabank, Banco Sabadell, Bankinter, Unicaja … no one was saved from the stock market crash as a byproduct of bankruptcy American entity Silicon Valley Bank (SVB). A small and medium-sized entity that unleashed fear in the markets about the possibility of a global infection.

On Friday, there was already a drop of about 5%, and higher in some cases, both United State As in Europe. This Monday, on the other hand, the worst part was dominated by the Old Continent. European stock markets posted broad declines but it was banks that suffered the most for the second day in a row. Distrust of the Federation grows, though Sector insists on Calm Transfer.

The Ibex 35 fell 3.51%; German Dax 3.04%; French cocoa 2.9%; and its Italian counterpart, 4.05%. Going into detail, the banking situation turned out to be much worse than that of the large European selective groups, with a decline of more than 11%.

In Spain, Banco Santander fell more than 7%; BBVA, more than 8%; Caixabank, more than 6%; Banco Sabadell nearly 12%; Bankinter 8.5%; and Unicaja 7.7%. The huge falls are even higher than the one that occurred last Friday.

In the rest of the large European entities, the panorama was not so different. Deutsche Bank left nearly 5%; BNP Paribas nearly 7%; Credit Agricole more than 3% …

The bearish situation in the European markets is widespread and has also continued in the opening of the US, with large entities such as Bank of America, JP Morgan, Citi, etc.

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Market overreaction

Despite a series of two consecutive days of collapses in the sector, financial sources confirm that the market has overreacted to an event that occurred in a local US bank that has nothing to do with how European financial institutions do.

They do not disdain the need to monitor everything that happens in the United States in the aftermath of the fall of the Silicon Valley bank, but they believe that the impact it has on the entire sector is exaggerated.

Similarly, as this newspaper reported, banks have requested internal and external reports to see in depth how the sector’s liquidity situation is in Europe. Conclusion: European banks are better than US banks and financial health is now strong.

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