Xinhua
16 Mar 2023, 03:48 GMT+10
Wednesday's fall was the tenth consecutive losing session for Credit Suisse's shares. They have lost nearly 40 percent of their value since March 3.
ROME, March 15 (Xinhua) -- Banking giant Credit Suisse lost nearly a fourth of its value Wednesday, amid the growing fallout from the collapse of two regional banks in the United States.
Wednesday marked the second time in three trading sessions since the collapse of California's Silicon Valley Bank (SVB), and the subsequent failure of Signature Bank from New York, that European financial stocks were severely battered.
Nevertheless, the dramatic impact on Credit Suisse in trading Wednesday was largely unexpected, since the institution is so large.
According to 2022 data from Insider Intelligence, Credit Suisse was the second-largest bank in Switzerland and the 17th-largest in Europe, with an estimated 730 billion euros (772 billion U.S. dollars) in assets under control.
The Swiss institution saw its share price plummet by 24 percent in trading Wednesday, ending the day at 1.7 Swiss francs in heavy trading. Earlier in the session the shares were down by more than 30 percent.
Wednesday's fall was the tenth consecutive losing session for the company's shares. They have lost nearly 40 percent of their value since March 3, when shares traded at 2.78 Swiss francs.
The latest developments have also increased volatility for the Swiss franc compared to the euro, the U.S. dollar, and other leading currencies.
Stock exchanges across Europe were also impacted by Wednesday's losses.
The DAX blue-chip index on Germany's Frankfurt Stock Exchange fell by 3.3 percent; in Paris, the CAC-40 index fell by 3.6 percent; shares slipped 4.6 percent in Milan; in Madrid they were down by 4.3 percent; and in Amsterdam by 2.9 percent.
In most cases, financial sector stocks led the retreat as investors worried about further impacts on banking institutions.
The Credit Suisse sell-off was reportedly triggered by a weaker-than-expected annual financial statement, followed by the announcement that a leading shareholder -- the Saudi National Bank -- would not provide new financial support through the acquisition of more shares.
The Swiss National Bank said late Wednesday that it would provide Credit Suisse with cash if required to keep it afloat, although officials said the bank was not at risk of collapse.
Meanwhile, the European Central Bank told other major European lenders to monitor their exposure to Credit Suisse shares of bonds.
European banks have been under pressure over the last 12 months, with inflation rates soaring amid energy supply and trade issues tied to the ongoing conflict between Russia and Ukraine. Rising prices have squeezed profits by pushing bond yields higher. (1 Swiss franc = 1.07 U.S. dollar)
Get a daily dose of Europe Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Europe Sun.
More InformationEVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...
BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...
]LONDON, U.K.: A World Health Organization (WHO) expert group investigating the origins of the COVID-19 pandemic released its final...
DOVER, Delaware: California Governor Gavin Newsom has taken legal aim at Fox News, accusing the network of deliberately distorting...
FRANKFURT, Germany: Germany has become the latest country to challenge Chinese AI firm DeepSeek over its data practices, as pressure...
TORONTO, Canada: Harvard University and the University of Toronto have created a backup plan to ensure Harvard graduate students continue...
NEW YORK, New York - Global stock indices closed with divergent performances on Tuesday, as investors weighed corporate earnings, central...
TORONTO, Canada: Canadian Prime Minister Mark Carney announced late on June 29 that trade negotiations with the U.S. have recommenced...
Vancouver, Canada: A high-stakes legal showdown is brewing in the world of athleisure. Lululemon, the Canadian brand known for its...
LONDON, U.K.: British oil giant Shell has denied reports that it is in talks to acquire rival oil company BP. The Wall Street Journal...
NEW YORK, New York - U.S. stock markets closed firmly in positive territory to start the week Monday, with the S&P 500 and Dow Jones...
WASHINGTON, D.C.: On Friday, President Donald Trump announced that he was halting trade discussions with Canada due to its decision...