European banking stocks halted
European stock markets were sharply lower, with banking shares in deep territory amid a global slump in Silicon Valley banking and even more negative results for Credit Suisse.
The pan-European Stoxx 600 index retreated 2.6%, with all sectors trading in the healthcare red bar, which was flat.
Banking stocks retreated 6.92%, followed by the energy sector, which fell 5%.
- BNP Paribas fell 11.2%
- Societe Generale decreased by 12.7%
- Commerzbank dropped by 10.12%
- Deutsche Bank fell by 8.53%.
Credit Suisse’s blue-chip index fell 28% after the bank’s biggest lender, Saudi National Bank, said it could not offer another support round.
Credit Suisse’s fall sparked widespread bank selling after the sector managed a slow and modest recovery.
Credit Suisse was temporarily suspended in the morning hours due to heavy losses. Deutsche Bank, Societe Generale and UBS did not comment.
Meanwhile, UK Chancellor has published his Spring Budget, which includes fuel tax cuts and energy support measures.
Asia-Pacific stocks rise
Asia-Pacific markets advanced quite a bit on Wednesday. The US inflation print for February was in line with expectations at a 5.9% annual rate of increase.
Hong Kong’s Hang Seng index advanced 1.63%, leading the region, while the Hang Seng Tech index was 2.34% higher.
South Korea’s Kospi advanced 1.32% to end the day at 2,379.73, while the Kosdaq rose 3.04% to close at 781.18 as the country’s unemployment numbers eased.
In mainland China, the Shanghai Composite advanced 0.54% to close at 3,263, while the Shenzhen Composite edged lower to end at 11,413 as investors looked further into economic data from China. The People’s Bank of China kept its medium-term lending rates steady at 2.74%.
In Japan, the Nikkei 225 was steady after paring earlier gains, led by banks, to close at 27,229.47. The Topix advanced 0.66% to end at 1960.13.
Samsung Electronics announced on Wednesday that it would build five new factories in South Korea, Nikkei reported, in what the South Korean government said was an investment of 300 trillion won over the next roughly 20 years.
