Fear resurfaced in the financial markets where the banking sector continued to lose feathers on Friday despite reassuring statements from politicians regarding the stability of the financial system.
In Europe, the places fell by 1.74% in Paris, 1.66% in Frankfurt, 1.26% in London following a first part of the week in the green following the disaster takeover of Credit Suisse by its rival. UBS.
“Uncertainty spreading through the markets” has led “the banking sector to give up all of its gains since the beginning of the year in the space of three weeks”, comments Michael Hewson, analyst at CMC Markets.
The expert sees “no clear catalyst” to explain the day’s bearish move “other than uncertainties regarding the prospect of future rate hikes and the effects this might have on financial stability” and the rest of the world. economy.
The impact of the rise in interest rates might penalize the most fragile banks and raise fears of new bankruptcies following those of Silicon Valley Bank (SVB) in the United States, then of two other American regional banks this month. this.
“These concerns seem to have reached a tipping point before the weekend,” said Mr. Hewson.
The banking sector of the broader Stoxx Europe 600 index declined for its part by 3.53%, following a sharp increase in the cost of insurance once morest the risk of default (CDS) of several European banks, Deutsche Bank in the lead.
Roughed up, the first German bank unscrewed by 8.53% following having sunk more than 13%. Commerzbank dropped 5.45% in Frankfurt.
In Paris, Societe Generale shares fell 6.13%, the largest drop in the CAC 40 index, BNP Paribas lost 5.27%. In London, Standard Chartered fell by 6.42%, but also Barclays (-4.21%) or Natwest (-3.58%).
A matter of trust
This is despite recent moves by central banks to improve access to liquidity and efforts to restore confidence in the banking system.
The statements of Christine Lagarde, the President of the European Central Bank, reaffirming the resilience of the banking system which “has solid positions in terms of capital and liquidity”, and those reassuring of Olaf Scholz or Emmanuel Macron, do not have not been able to calm the spirits.
“The euro zone is the zone where the banks are the most solid”, affirmed the French president, while the German chancellor judged that there is “no need to worry” for Deutsche Bank.
In Zurich, Credit Suisse fell by 5.19% and UBS by 3.55%. According to Bloomberg, these banks are among those suspected by American justice of having helped Russian oligarchs to circumvent Western sanctions. Contacted by AFP, Credit Suisse declined to comment on the information and UBS did not respond.
The American indices evolved with more serenity: the Dow Jones and the broader S&P 500 index were close to equilibrium and the Nasdaq yielded 0.38% around 5:00 p.m. GMT.
In New York, the sector was also neglected, but to a lesser extent: JP Morgan Chase lost 2.01%, Morgan Stanley 2.69%, Goldman Sachs 1.01% and Bank of America 0.19%. The regional bank First Republic, particularly under pressure since the bankruptcy of SVB, grabbed 0.24% around 5:00 p.m. GMT.
US Treasury Secretary Janet Yellen will bring together the country’s financial regulators on Friday, including Federal Reserve (Fed) Chairman Jerome Powell.
Dollar and government bonds wanted
The bond market once once more acted as a refuge for investors: the yield on 10-year US government bonds stood at 3.37%, once morest 3.42% the day before closing.
Another safe haven, the dollar rose 0.68% once morest the euro, to 1.075 dollars for one euro.
Oil prices also fall, which is often a sign that investors fear an economic recession. A barrel of Brent from the North Sea for delivery in May lost 1.37% to 74.88 dollars, while a barrel of American WTI for the same term fell 1.10% to 69.19 dollars.
