SVB Collpase aftermath: Financial stocks tumble, lose $465 billion globally

Updated : Mar 16, 2023 13:25
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Editorji News Desk

Financial stocks have seen an erosion of $465 billion in market value, globally, due to after the collapse of Silicon Valley bank. 

As per a Bloomberg report, the combined market-capitalisation of the MSCI World Financials Index and MSCI EM Financials Index dropped about $465 billion in three days. 

Heavyweights like MSCI Asia Pacific Financials fell 2.7%, Mitsubishi UFJ Financial Group fell 8.3%, Hana Financial Group and ANZ Group fell 4.7% and 2.8% respectively. 

Globally, stocks have been hit hard despite assurances coming in from regulators and the U.S President,  which seem to have been unable to calm sentiment. 

Most of the fluctuations are the effect of worries of a contagion effect post the SVB collapse. However, Asian lenders are being seen a insulated from any direct impact. 

Due to expectations that the Federal Reserve will delay increasing interest rates in light of recent turmoil in the banking system, two-year Treasury yields experienced their biggest one-day decline since the early 1980s on Monday.

 

 

global economy

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