Global markets shuddered as bad loan woes at two US regional banks revived fears of a 2023-style financial crisis. The news sparked a sell-off in stocks and a surge into safe-haven assets.
The panic was triggered by Zions Bancorporation and Western Alliance, which reported significant credit losses. This fueled heavy losses on Wall Street, which then spread to Asia, with Japan’s Nikkei and Hong Kong’s Hang Seng falling 1.6% and 2% respectively.
European markets were also hammered. The FTSE 100, Germany’s Dax, and Italy’s FTSE Mib all fell sharply, led by a rout in bank stocks. The pan-European banking sector lost €37.4 billion in value.
Investors, fearing a “domino effect,” piled into gold, pushing its price to a new record of $4,378 an ounce. The VIX “fear index” surged, reflecting the deep unease in the market.
Global Markets Shudder as US Bank Woes Revive Crisis Fears
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