Fears of a new episode of the financial crisis clouded the results week of Spanish banks, which were weighed down on Friday by rumors of a new bailout for US First Republic Bank. The Ibex-35 lost 0.79% to 9,241 points, extending its weekly decline to 1.85% and completely wiping out the gains built up in the month of April. Investors prefer to watch the bulls from the sidelines and undo positions across the banking sector after learning that US authorities are seeking an urgent fix for First Republic Bank, which rallied more than 70% this week, pushing its listing to lows. Remained. The company, which was already rescued in March by the country’s major entities, is once again on the verge of bankruptcy with a remarkable flight of deposits that has reignited mistrust in the sector. As reported by Bloomberg, the Treasury, the Federal Deposit Insurance Corporation and the Federal Reserve (Fed) are already negotiating alternatives to the entity. And these talks have returned nervousness to a sector that featured Unicaja in Spain on Friday as it plummeted more than 9.94% in the stock market following the presentation of its quarterly accounts. The rest of the entities fell like dominoes, with losses of more than 7% for Sabadell, 5.5% for CaixaBank and 3.9% for Bankinter. BBVA, for its part, lost 3.5%, while Santander lost another 2.9%. Investors also cited new macroeconomic benchmarks on Friday pointing to a cooling in a rising interest rate environment. Specifically, GDP in the eurozone barely increased by 0.1%, rekindling fears of a slowdown. Meanwhile, the price of a barrel of Brent, a reference in Europe, in the commodities market was around $78.7, while the US West Texas traded at $74.8.
Source: La Verdad
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.
