Fears over the failure of Silicon Valley Bank are hitting markets around the world hard.
Markets fear its 'bank run' after Santa Clara-based lender unexpectedly issues $2.25 billion in equity to bolster capital following significant losses on investment portfolio.
Many venture capital investors have thus recommended withdrawing their funds from the bank causing a 60% plunge in Svb shares and a knock-on effect throughout the hi-tech sector and in the financial and banking sector.
Heavy Asia and Europe.
The Hong Kong Stock Exchange closed the session with a thud, aligning itself with the heavy losses of Wall Street: the Hang Seng index dropped 3.04%, slipping to 19,319.92 points Milan dropped 2.2%.
MILAN SELLS 2.2%, THE BANKS WEIGHT
The Milan Stock Exchange (-2.2%) continues to be heavy, in line with the main European lists and after the negative performance of Wall Street and the Asian markets.
In Piazza Affari the banks weigh after the thud of US credit institutions.
The spread between the BTP and the Bund stood at 178 points, with the yield on the Italian 10-year bond at 4.28% (-10 basis points).
Unicredit and Fineco (-4.6%), Bper (-4.4%), Banco Bpm (-4.1%), Intesa (-4%), Mps (-3.3%) slip in the main list.
Azimut (-3.9%), Banca Generali (-3.7%), Mediolanum (-3.4%) are also bad.
Complicated session also for the technological with Stm (-3.6%) and Prysmian (-2.8%).
The automotive sector was heavy, with Stellantis (-2.6%), Iveco (-2.4%) and Cnh (-2.1%) down.
The drop in oil prices weighs heavily on the energy sector where Eni and Saipem are suffering (-1.4%).
Tim was also bad (-1.5%), on the day of the related parties committee on the CDP offer, while Leonardo held up (-0.5%) after the accounts.
Italgas (+1.1%) goes against the trend, after the accounts, Terna (+1%) and Snam (+0.3%).
GOVERNMENT BONDS RATES FAR DOWN, BTP AT 4.28%
Government bond yields fell sharply while the negative performance of the stock markets continued, in the wake of that of Wall Street and Asia with investors move towards safer assets.
In the Old Continent there is a double-digit drop in rates with the Italian 10-year bond dropping ten basis points and falling to 4.28%.
The spread between the BTP and the Bund stands at 178 points.
The yields of 'peripheral' countries were also down, with that of Spain at 3.5% (-13 points) and that of Greece at 4.28% (-8 points).
The 10-year German Bund stands at 2.47%, down 15 basis points.
