SINGAPORE : Asian stocks tumbled on Thursday, and investors bought gold, bonds and the dollar as fear of a banking crisis was reignited by fresh troubles at Credit Suisse, leaving markets on edge ahead of a European Central Bank meeting later in the day.
In New York the S&P 500 fell 0.7 per cent but the focus was on banks and in Europe where Credit Suisse shares crashed 30 per cent to a record low after its biggest shareholder, Saudi National Bank, said it could not provide further financial help. They said the bank could access liquidity from the central bank if needed. The moves follow the collapse of U.S. lenders Silicon Valley Bank and Signature Bank in recent days which have sent financial markets on a roller-coaster ride.
Money market pricing implies a less than a 20 per cent chance of a 50 bp hike from the ECB, down from 90 per cent a day earlier.