Illustrative photo – Silicon Valley Bank sign in Frankfurt March 13, 2023.
London/Frankfurt – European shares weakened today despite early gains, remain flat concerns about the banking sector. The pan-European STOXX Europe 600 index fell 1.21 percent today to close at 436.31 points. It lost almost four percent for the entire week. According to Reuters, it recorded the most significant weekly decline in five months.
The global banking sector has been under pressure since the collapse of US financial institution Silicon Valley Bank (SVB) last week. Now, concerns are focused on the large Swiss bank Credit Suisse and the American regional financial institution First Republic Bank.
On Thursday, the large American banks provided a financial injection of $30 billion (CZK 675 billion) to First Republic. The aid came shortly after Credit Suisse, Switzerland's second largest bank, secured an emergency loan of up to 50 billion Swiss francs (CZK 1.2 trillion) from the central bank to support liquidity.
Shares of Credit Suisse initially gained today , however, eventually closed trading with an eight percent drop. The shares of other major European banks also weakened, including the British company HSBC and the French company BNP Paribas.
The main index of the London stock exchange FTSE 100 fell today by 1.01 percent to 7335.40 points. France's CAC 40 index fell 1.43 percent to 6,925.40 points, while Germany's DAX index fell 1.33 percent to 14,768.20 points.