Nearly £11 billion was wiped off the value of the UK’s five largest listed banks as a credit scare originating in the US hit London markets. Barclays was the worst-hit, with its shares closing down nearly 6%.
The global panic was ignited by two US regional lenders, Zions and Western Alliance, which reported multi-million dollar bad loans. This news sparked fears of a repeat of the 2023 SVB crisis and a wider credit crunch.
The sell-off was global. The FTSE 100 fell 0.9%, while Germany’s Dax dropped 1.8%. Across Europe, the banking sector lost €37.4 billion, with Deutsche Bank and Banco Sabadell also falling sharply. Asian markets had already closed lower.
The anxiety sent investors fleeing to safe-haven assets. Gold prices hit a new record high of $4,378 an ounce, and the VIX “fear index” surged, reflecting the deep uncertainty gripping the market.
UK’s Top Banks Lose £11bn as US Credit Fears Hit London
Date:
Picture Credit: www.easy-peasy.ai
