All eyes will be on the markets amid what is expected to be a strong sell-off in banking stocks around the world after the Silicon Valley Bank collapse
All eyes will be on the markets today amid what is expected to be a sharp sell-off in bank stocks around the world.
In London, traders and bankers worked all weekend to figure out how much exposure they had to the Silicon Valley Bank fallout.
Fears are growing that the biggest US bank failure since the financial crisis could lead to contagion and expose other lenders close to the tech sector.
While many investors say it’s too early to talk about a “Lehman moment,” others worry that after years of record-low interest rates, other banks may also be in crisis.
Analysts predict HSBC, Lloyds, Barclays, Natwest and Standard Chartered will all be sold heavily after wiping nearly £10bn off their share prices on Friday.
Worry: Fears are growing that the biggest US bank failure since the financial crisis could lead to contagion and expose other lenders close to the tech sector
The sector’s sell-off weighed on the FTSE 100, which ended the day down 131.63 points at 7748.35.
Other companies closely scrutinized include companies such as Molten Ventures, which had a £150m credit facility with SVB.
Any lender with heavy tech exposure could be considered a risk, one analyst said.
In Paris, Societe Generale and BNP Paribas will be closely watched. In the United States, JP Morgan, Citigroup, Morgan Stanley, Goldman Sachs and Bank of America will also be struggling after turbulent trading last week.
One trader told the Daily Mail: ‘I think there is real fear going into the first trading session of the week. This is very serious.’
