European stock markets were down sharply, with bank 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 fell 2.6%, with all sectors trading at the red healthcare bar, which was flat.
Bank shares fell 6.92%, followed by the energy sector, which fell 5%.
- BNP Paribas fell 11.2%
- Société Générale decreased by 12.7%
- Commerzbank fell 10.12%
- Deutsche Bank fell 8.53%.
Credit Suisse’s blue-chip index fell 28% after the bank’s biggest lender, the Saudi National Bank, said it could not offer another round of support.
Credit Suisse’s slump triggered widespread bank sales after the sector achieved a slow and modest recovery.
Credit Suisse was temporarily suspended in the morning due to heavy losses. Deutsche Bank, Societe Generale and UBS had no comment.
Meanwhile, the UK chancellor has released his spring budget, which includes fuel tax cuts and energy support measures.
Asia-Pacific stocks rise
Asia-Pacific markets rallied quite a bit on Wednesday. The US inflation figure for February was in line with expectations with an annual rate of increase of 5.9%.
Hong Kong’s Hang Seng Index advanced 1.63%, leading the region, while the Hang Seng Tech Index rose 2.34%.
South Korea’s Kospi rose 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 figures eased.
In mainland China, the Shanghai Composite advanced 0.54% to close at 3,263, while the Shenzhen Composite dipped to finish at 11,413, as investors took a closer look at economic data from China. The People’s Bank of China held its medium-term lending rates steady at 2.74%.
In Japan, the Nikkei 225 held steady after paring earlier gains, led by banks, to close at 27,229.47. The Topix advanced 0.66% to close at 1960.13.
Samsung Electronics announced on Wednesday that it would build five new factories in South Korea, the Nikkei reported, in what the South Korean government said was an investment of 300 trillion won over the next 20 years.
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