📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

ECB's De Guindos warned finance ministers of bank vulnerabilities - reports

Published 03/16/2023, 08:48 AM
Updated 03/16/2023, 09:23 AM
CSGN
-
DBKGn
-
BNPP
-
BCP
-
SAN
-
CRDI
-

By Geoffrey Smith 

Investing.com -- The European Central Bank warned Eurozone finance ministers earlier this week that some banks in the single currency zone could be vulnerable to rising interest rates, newswires reported Thursday.

The news, which came out less than an hour before the ECB announces the decisions from its latest policy meeting, sent a fresh chill through European markets, hitting bank stocks and driving money into bonds, pushing sovereign yields lower.  

Eurozone banks had reacted negatively to news of the three U.S. bank failures last week, and fell further earlier this week on unrelated developments at Credit Suisse (SIX:CSGN), which is halfway through an expensive restructuring process that will see it exit investment banking. 

Credit Suisse had secured a $54 billion credit line and a public vote of confidence from the Swiss National Bank overnight, sending its stock and bond prices sharply higher in early trading and pulling the rest of the European bank sector with it.

However that move reversed in the course of the moment, and some of the region's biggest banks hit new lows after news emerged that De Guindos had warned finance ministers of bank vulnerabilities. Bloomberg reported that De Guindos had made his comments on Tuesday, before the downward lurch in Credit Suisse stock.

By 09:00 ET (13:00 GMT), Deutsche Bank (ETR:DBKGn) stock was down 1.6% at a new five-month low, while Portugal's largest bank Banco Comercial (ELI:BCP) was down 3.0%, a two-month low. BNP Paribas (EPA:BNPP) stock was up 0.4%, while Santander (BME:SAN) stock was up 0.8% and UniCredit (BIT:CRDI) stock was up 0.3%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.