European stock markets continued their decline today, Monday, recording the worst session of the year, on the impact of fears of the spread of contagion to the banking sector after the bankruptcy of two US banks, Silicon Valley Bank (Silicon Valley SVB) and “Signature Bank”.

At around 9:40 GMT, the decline was 2.95% in Paris, 3.12% in Frankfurt, 2.43% in London, and 4.60% in Milan.

Among the banks, "BNP Paribas" declined by 6.06%, "Santander" by 7.37%, "ENG" by 8.30%, and "Commerzbank" by 12.2%.

The repercussions of the collapse of the Silicon Valley bank also appeared on European markets today, especially in the banking sector stocks.

These indices are the "FTSE 100" index in the London Stock Exchange, the "DAX" index in Frankfurt, and the "CAC 40" index in Paris.

The collapse of Signature Bank had repercussions on European markets (Anatolia)

Rise and Actions

This comes as futures contracts rose on Wall Street after the Federal Reserve (US Central Bank) and the US Treasury announced a set of measures to stabilize the banking system, and said that depositors in Silicon Valley Bank will be able to access their deposits today, Monday.

European banking shares fell 1.1%, after witnessing the worst selling in more than 5 months over two days, amid concerns about the resilience of the sector's balance sheet in the face of the collapse of the Silicon Valley bank, in addition to expectations of raising interest rates.

Investors now see the odds of the Federal Reserve raising interest rates by 25 basis points next week as close to 90%, a drastic change from the 50 basis points they had previously expected after strong economic data.


interest rates

Goldman Sachs said on Sunday that it does not expect to raise interest rates in light of the recent pressures on the financial sector.

Meanwhile, the European Central Bank is set to raise interest rates by 50 basis points later this week.

HSBC fell 0.1%, after the British bank said it had acquired the unit of Silicon Valley Bank in Britain for one pound ($ 1.21), which means saving a major bank for lending to emerging companies in the field of technology in Britain.

US authorities took emergency measures on Sunday to boost confidence in the banking system, after the collapse of a Silicon Valley bank threatened to spark a wider financial crisis.