The banks have once again come under strong selling pressure and are having a noticeable effect on the domestic stock market. The Vienna stock exchange noticeably increased its losses on Wednesday morning. The ATX increases the losses to 2.6 points.
The ATX dropped 2.63 percent to 3289.13 points at 10:40 a.m. Following the previous day’s recovery movement, the downward pull of the domestic leading index continued after a deep red start to the week. The ATX was pushed lower by renewed price weakness from the heavily weighted banks. Banks across Europe were under great pressure during the year.
The biggest collapse of US banks since the 2008 financial crisis
BAWAG shares fell 4.5 percent in Vienna and Erste Group shareholders posted losses of as much as 3.7 percent. At Raiffeisen Bank International there was a discount of 3.3 percent. The collapse of Silicon Valley Bank last week sent jitters across the international banking sector. Last Friday, the United States saw the largest collapse of US banks since the 2008 financial crisis.
More bad news from Switzerland
Now on the day of the report there was another bad news from Switzerland. Credit Suisse, which is under pressure, cannot count on further help from major shareholder Saudi National Bank. Shares fell massively, according to a bank representative in an interview with Bloomberg TV.
Key interest rate hike: ECB decision on Thursday
According to Helaba analysts, market participants in the financial markets are now cautious in the run-up to the ECB’s decision on Thursday. One expert predicted that despite the recent turbulence in the US banking sector, central banks would not be deterred from their plan to raise key rates in the Eurozone by another 50 basis points.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
