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Markets were jittery early on Wednesday, as growing fears over a US banking crisis added to wider concerns over the “huge risks” to the global economy.
Stocks in Europe followed Wall Street lower amid mounting fears over a banking crisis. Yesterday, shares in First Republic plunged, after it said it was exploring an asset sale of up to $100bn of long-dated mortgages and securities as part of a rescue plan.
It raised fresh concerns over the health of the US banking sector.
Clifford Bennett, chief economist at ACY Securities, said a banking crisis was “still hovering just beneath the surface”, which was added “to the realization Russia has long-range missiles that are incredibly accurate that no one has the capacity to stop, to the sharply higher China-US tensions, more sanctions against both Russia and China, and the likely further unravelling of global trade and the reemergence of higher inflation, [meaning that] risks are huge”.
John Woods, Asia Pacific chief investment officer at Credit Suisse Group AG, said on Bloomberg that the markets may be “possibly overlooking the weight of economic deceleration that is playing through right now, particularly in the United States”.
The FTSE 100 slipped by 0.37pc in early trading on Wednesday, whilst the CAC 40, the DAX and the Euro Stoxx 50 were all in the red.
It comes ahead of comments from ECB policymakers later today for insight over how far the central bank will go in its monetary tightening push.
Read the latest updates below.
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