Markets were jittery early Wednesday as growing fears of a US banking crisis added to broader concerns about the “enormous risks” to the global economy.
Equities in Europe trailed Wall Street lower amid growing fears of a banking crisis. Yesterday, shares of First Republic tumbled after it said it was considering selling up to $100 billion in assets of long-term mortgages and securities as part of a bailout plan.
It raised new concerns about the health of the US banking sector.
Clifford Bennett, chief economist at ACY Securities, said a banking crisis “still lurks just below the surface,” adding, “to the realization that Russia has long-range missiles that are incredibly accurate that nobody can stop the significantly higher tensions between.” China and the US, more sanctions against Russia and China and the likely further unraveling of world trade and the re-emergence of higher inflation, [meaning that] The risks are enormous.”
John Woods, chief investment officer for Asia-Pacific at Credit Suisse Group AG, said on Bloomberg that markets “may be overlooking the weight of the economic slowdown that is currently unfolding, particularly in the United States.”
The FTSE 100 slipped 0.37 percent in early trade on Wednesday, while the CAC 40, DAX and Euro Stoxx 50 were all down.
Comments from ECB officials later today will offer a glimpse of how far the central bank will go in its push to tighten monetary policy.
Read the latest updates below.
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