As a push to curb the impact of the collapse failed to allay worries, the development sparked a market panic causing investors to seek new havens for their investments., the best single gauge of big-cap U.S equities, declined 0.3 per cent in morning trading, later dropping by 1.4 per cent after steep falls in bank stocks, especially regional banks. This prompted a halt in trading.
Regional banks encountered the biggest strain, with First Republic Bank shedding 66.3 per cent despite the lender’s Sunday reassurance that it has shored up its finances with funding from the Federal Reserve and JP Morgan Chase.“So far, it seems that the potential problem banks are few, and importantly do not extend to the so-called systemically important banks,” said analysts at ING.
Performance in equity markets in Asia was a mixed bag, seeing a shockwave following a declaration by the U.S. to protect depositors at banks. Yet the losses magnified in some parts of Europe, for instance in Germany where the DAX shed 3.3 per cent following a plunge in bank stocks across the continent.
Kevin Cummins, the chief U.S. economist at NatWest, said “At this point in time, depending on reactions in financial markets and eventual fallout on the overall economy, we wouldn’t rule out that the hiking cycle could even be over and that the next move by Fed officials may be lower, not higher.”
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: GuardianNigeria - 🏆 1. / 94 Read more »