(MENAFN) As concerns over the recent banking crisis in both the US and the EU continue to grow, European stock markets have seen negative figures as of midday on Friday. The developments at Swiss lender Credit Suisse and the bankruptcy of US-based Silicon Valley Bank and Signature Bank have raised concerns about the global banking sector's health.
Credit Suisse went into deep financial trouble last week, and its rival UBS bought it for around 3 billion Swiss francs ($3.25 billion). However, after the takeover, UBS also saw a loss in the value of its shares. As concerns mounted, pressure on European financial institutions increased, and the STOXX 600 index fell nearly 10% since March 15.
On Friday, European shares decreased around 2% as of 1230GMT. The STOXX Europe 600 index declined 1.77% to 438.32 points. The UK's FTSE 100 index dropped 1.75% to 7,368.11 points, and Germany's DAX index fell 2.39% to 14,846.67 points.
Germany's Deutsche Bank shares fell nearly 13% on Friday after credit default swaps surged late Thursday related to a possible global banking crisis. The German lender's stock continued to drop for a third day in a row. France's CAC 40 index was also down by 2.25% to 6,678.48 points, and Italy's FTSE MIB decreased by 2.61% to 25,791.37 points.
The current situation emphasizes how the recent events have wreaked havoc on the global economy, and the banking crisis has been a significant contributor to this. With the situation still unfolding, it remains to be seen how much more damage it will cause to the global economy and financial markets. Investors are advised to stay cautious and keep a close eye on the situation as it develops.
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