Stock Markets Tumbled again on Friday
The stock markets tumbled again on Friday, fears of a banking crisis resurfaced despite massive financial lifelines thrown at embattled lenders to prevent contagion across the sector. Markets had rallied on Thursday, after wall street titans, including JP Morgan, Bank of America, and Citigroup, pledged to inject $30 billion into first Republic bank.
Credit Suisse had also rebounded after it said it would borrow up to $54 billion from the swiss central bank. but, shares of first Republic bank and Credit Suisse dove back deep in the red on Friday. The U.S. lender slumped 33%, and Switzerland’s second-biggest bank dropped 8%. Investors will focus next week on whether the U.S. federal reserve will stick to its interest rate-hike policy to combat inflation. On Thursday, the European central bank stuck to its plan to lift rates by a half percentage point despite the turmoil.
Credit to : WION