Gold Mining News Hubb
Advertisement
  • Home
  • Gold News
  • Mining News
  • Contact us
No Result
View All Result
  • Home
  • Gold News
  • Mining News
  • Contact us
No Result
View All Result
Gold Mining News Hubb
No Result
View All Result
Home Gold News

US bank stocks slump as Silicon Valley Bank collapse stirs market turmoil

admin by admin
March 13, 2023
in Gold News


Bank stocks on Wall Street plummeted on Monday as part of the sweeping reverberations of the crash of Silicon Valley Bank (SVB), the second-largest bank failure in U.S. history.

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 S&P 500, 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.

On Sunday, US regulators waded in the aftermath of the collapse of SVB as well as that of Signature Bank.

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.

Big lenders Morgan Stanley, JP Morgan Chase and Bank of America all fell.

“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.

READ ALSO: Naira Redesign: Banks’ cash withdrawal limit is illegal – Supreme Court

Hopes strengthened that the Fed will likely halt monetary policy tightening in the light of the bank collapses even as it warms up for a policy meeting next week.

TEXEM Advert

As of 10 a.m. Eastern Time, the Dow Jones Industrial Average had advanced by 94 points or 0.3 per cent at 32,004. The tech-heavy Nasdaq composite had climbed 0.1 per cent as of then, both indexes wiping out earlier losses.

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.

A group of investors want the Fed to swiftly arrange to prune interest rates in order to arrest the situation.

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.”

Increasing rates could decelerate inflation by slowing the economy even though it strengthens the likelihood of a recession later on.

The Fed started upping rates roughly a year ago, which has hampered the investment portfolio of banks.

The government in London organised the sale of SVB’s UK subsidiary, Silicon Valley Bank UK Limited, for the nominal sum of one British pound, with HSBC acquiring it in a rescue deal.


Kogi AD

Dangote adbanner 728x90_2 (1)

Even though the lender is small, holding below 0.2 per cent of bank deposits, it had been central to funding tech and biotech startups, which the British government is relying on to stoke economic growth.


Support PREMIUM TIMES’ journalism of integrity and credibility

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate





TEXT AD: Call Willie – +2348098788999






PT Mag Campaign AD





Source link

Previous Post

Map: Oil and Gas Spills in the U.S. Since 2010

Next Post

SA mining production shrinks for 12th consecutive month as power curtailments weigh

Next Post

SA mining production shrinks for 12th consecutive month as power curtailments weigh

Recommended

Tharisa raises $31.8m in Zimbabwe bond for Karo Platinum project

December 13, 2022

APC petitions INEC over Delta guber poll

March 25, 2023

Don't miss it

Gold News

Gov Ikpeazu sacks several aides

March 31, 2023
Mining News

Visualizing the Flow of Energy-Related CO2 Emissions in the U.S.

March 30, 2023
Mining News

India to start exporting coal by 2026

March 30, 2023
Gold News

Gemfields warns recessionary pressures may dampen sales after record 2022

March 30, 2023
Gold News

Time to Break the Deadlock on TotalEnergies’ Offshore Gas Deal

March 30, 2023
Gold News

FEC approves N41bn for construction of centre of excellence, hospital in Rivers

March 30, 2023
gold mining-66

© Gold Mining News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Gold News
  • Mining News
  • Contact us

Newsletter Sign Up

No Result
View All Result
  • Home
  • Gold News
  • Mining News
  • Contact us

© 2022 Gold Mining News Hubb All rights reserved.