European banks were rocked by another turbulent session on Wednesday, plunging as much as 10% amid concerns over the global fallout from the collapse of Silicon Valley Bank last week and the dramatic fall of Credit Suisse, which lead to several bank stocks, including Credit Suisse, being temporarily halted from trade.Shares from Switzerland's second-largest bank, Credit Suisse, dropped more than 25% to a new all-time low after the company's main shareholder, the Saudi National Bank, announced they could not shore up their investments in Credit Suisse, citing regulatory concerns.This latest development is another blow to the group, which has been plagued by a series of financial scandals.
European indexes tumbled on weakness from banks. France’s CAC 40 dropped 3.5%, and Germany’s DAX lost 3%. The FTSE 100 in London fell 3.1%.Stocks are tumbling on Wall Street Wednesday as worries about the strength of banks worsen on both sides of the Atlantic Ocean.
At the open, the Dow Jones Industrial Average fell 1.51%, while Nasdaq slid 1.20%, and S&P 500 1.39%Bank stocks have already been shaken following the collapse of Silicon Valley Bank.
The historic failure triggered panic despite unprecedented intervention from the US authorities to contain spillovers and reassure the markets.