Global markets sink after sharp selloff in US bank stocks
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Loading... - Eloisa Perez
- 10 Mar 2023
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Markets in Europe and Asia tumbled Friday following a sharp selloff in banking stocks in the United States as a major tech lender said it had to sell shares to plug a hole in its finances.
SVB Financial Group, which is partnered with nearly half of all venture-backed tech and health care companies in the United States, was forced to raise capital after it sold part of its portfolio of US Treasuries at a loss to cover a rapid decline in customer deposits.
The Nasdaq exchange suspended trading in SVB shares at 8.35 a.m. ET Friday after they fell 49% in premarket trading. Stocks in the company cratered 60% on Thursday.
“Lots of banks hold large portfolios of bonds and rising interest rates make these less valuable — the SVB situation is a reminder that many institutions are sitting on large unrealized losses on their fixed-income holdings,” commented Russ Mould, investment director at UK broker AJ Bell. Read More..
