Bank stocks have fallen sharply again as investors remain nervous following the collapse of the US Silicon Valley Bank (SVB) last week.
The bankruptcy of the SVB has raised fears that other banks could also face problems.
Shares in Swiss banking giant Credit Suisse hit a new low after falling 20%.
The fall came after Credit Suisse’s largest investor said it could no longer provide financial aid to the bank.
Stock indices across Europe – including Britain’s FTSE 100 – fell about 2.5% by mid-morning.
The FTSE 100 is down 6% over the past week to hit a three-month low.
“Investors remain nervous about what may be lurking in the shadows,” said Russ Mold, investment director at AJ Bell.
“No wonder investor sentiment towards big banks remains cautious as credit agency Moody’s downgraded its outlook on the US banking system to negative.”
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