A man walks past the London Stock Exchange in London, Britain, on March 9, 2020. (Photo by Tim Ireland/Xinhua)
After a day of relative calm, concerns over financial stability had intensified, said Fawad Razaqzada, market analyst for the financial services provider City Index.
LONDON, March 15 (Xinhua) -- British stocks plunged on Wednesday as shares in Swiss banking giant Credit Suisse tumbled to a record low, further increasing investor concerns over financial instability after the collapse of Silicon Valley Bank (SVB).
The FTSE 100 index, the leading benchmark for blue chip companies listed in the United Kingdom (UK), ended the session down 3.83 percent, or 292.66 points, at 7,344.45. Insurance company Prudential, as well as banks Barclays and Standard Chartered, were among the worst performers.
People queue up outside the headquarters of the Silicon Valley Bank (SVB) in Santa Clara, California, the United States, March 13, 2023. (Photo by Li Jianguo/Xinhua)
Fawad Razaqzada, market analyst for the financial services provider City Index, said that after a day of relative calm, concerns over financial stability had intensified. Shares in European banks were heavily impacted by plunging shares in Credit Suisse, he added.
"More losses could be on the way if investor concerns over Credit Suisse are not addressed by authorities quickly. If the bank fails, this could have major implications for other European banks," Razaqzada warned.
Chief Europe economist Andrew Kenningham at Capital Economics consultancy also said that Credit Suisse is a greater concern for the global economy than the regional U.S. banks which were in the firing line last week.
Credit Suisse has a much larger balance sheet than SVB, and is globally far more inter-connected, with multiple subsidiaries outside Switzerland including in the United States. It is also a U.S. primary broker, Kenningham said.
"Credit Suisse is not just a Swiss problem but a global one," he added. "Most importantly, the problems in Credit Suisse once more raise the question whether this is the beginning of a global crisis or just another 'idiosyncratic' case."
A building of Credit Suisse, Switzerland's second-largest bank, is pictured in Geneva, Switzerland, Oct. 3, 2022. (Xinhua/Lian Yi)■