Basics of economics Every day, find selected information from a world in complete transformation.
calamity | Stock markets fell an average of 3% on Wednesday on banking sector concernsEspecially Swiss creditOf which The main Saudi shareholder He ruled out bailing out the troubled bank. Shares of Switzerland’s second largest bank fell more than 24% On the Swiss Stock Exchange on Wednesday morning, it reached a historical low of 1.7275 Swiss francs. This free fall follows the announcement of the main shareholder of the bank, Saudi National Bank. This statement deeply worries the markets and raises concerns about the fragility of the European banking sector. the bank Swiss credit, which has already suffered significant losses in recent years, is now considered the “next likely domino” by some analysts. meeting European Central Bank (European Central Bank) meeting scheduled for Wednesday is also a concern for investors. Problems in the European banking sector are due to a difficult adjustment to higher rates, and the markets are waiting to see how European Central Bank to answer it.
He follows | The euro’s fall raises concerns about the fragility of Credit Suisse and the European economy. European stock exchanges lost between 2.4% and 4%while European bank stocks fell, with losses of up to 13%. US markets also fell Dow Jones and the S&P500 Having lost about 1.4%. Signs of significant investor excitement can be read across all markets, with oil reaching its lowest level since December 2021 and prices dropping sharply. Investors are now looking for signs of support from governments and financial authorities to stabilize the markets.
This situation comes on the eve of a meeting European Central Bank (European Central Bank), which must governinterest rates. Investors are keen to see the ECB’s reaction to the situation, as the banking sector struggles to adjust to higher rates.
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