Stock markets plunge globally due to US banking crisis - Shares of the world's leading bank Credit Suisse fall by over five percent

Washington/London/Tokyo – Despite the assurances given by President Joe Biden in the wake of the US banking crisis, uncertainty among global investors still remains. This has had a strong impact on global stock markets, including the US and stocks in the banking sector have taken a huge hit. In the US alone, banks suffered losses of nearly 90 billion dollars. Shares of banks in Europe and Asia fell between 7-13 percent. America’s leading analyst and former fund manager, Jim Cramer, warned that although the country’s systems are on alert, the crisis in the banking sector is not over yet.

Last week, three US banks, Silvergate, SVB and Signature Bank, failed one after the other. It is said that the account holders and investors have lost more than 200 billion dollars. The media and analysts claim that after these failed banks, at least 40 more banks in the US need financial support. Apart from banks, many finance, investment and technology companies are also said to be in trouble. It is believed that the repercussions of the crisis that started in the banking sector will be felt in these sectors as well.

Meanwhile, the serious effects of the crisis in the US are being seen in the international stock markets. Along with the US, European and Asian stock markets began to fall. On Monday, there was a fall in the US stock indices MSCI AC Asia Pacific Index, S&P 500 and Dow Jones Industrial Average. The shares of First Republic Bank in the US fell by almost 60 percent. Shares of leading US banks were reported to have lost nearly 90 billion dollars in value. Europe’s STOXX Banking Index fell 5.7 percent. The shares of Credit Suisse, one of the 10 leading banks in the world, fell by 9.6 percent. The shares of Commerzbank, the leading bank in Germany, fell by more than 12 percent. Shares of Barclays Bank fell by 5.7 percent and shares of UniCredit fell by seven and a half percent. The shares of the leading bank in Britain, HSBC, also fell by almost four percent.

In Asia, Japan, South Korea, Singapore and Hong Kong stock indices were hit hard. Japan’s Topix Banks Share Index fell more than 7 percent, while the Nikkei 225 index fell 2.2 percent. The shares of Mizuho Financial Group, MUFG and Sumitomo Mitsui Financial Group, the leading banks in Japan, fell by 7 to 10 percent. South Korea’s KOSPI fell by 2.6 percent, while Hong Kong’s Hang Seng Index fell by 2.4 percent.

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