Asian shares fall, European markets mixed amid bank worries
CTV
European markets were mixed Tuesday after a broad retreat in Asia led by declines in bank shares as investors watched to see what's next following the second- and third-largest bank failures in U.S. history.
European markets were mixed Tuesday after a broad retreat in Asia led by declines in bank shares as investors watched to see what's next following the second- and third-largest bank failures in U.S. history.
Oil prices fell nearly US$2 a barrel while U.S. futures were higher.
While direct global exposure to risks from the U.S. failures outside the U.S. appears limited, the collapses of Silicon Valley Bank and Signature Bank have shaken confidence in the industry at a time when the Federal Reserve and other central banks are struggling to fine-tune policies to crush stubborn inflation without snuffing out post-pandemic economic recoveries.
Worries over a possible spreading of risks throughout financial systems have been countered, however, by hopes that the Fed might slow its interest rate hikes to relieve pressures on markets.
European benchmarks were mixed in early trading. France's CAC 40 rose 0.1% to 7,019.04. Germany's DAX added 0.5% to 15,032.84. Britain's FTSE 100 shed 0.3% to 7,524.47.
On Wall Street, the future for the S&P 500 was up 0.3% while that for the Dow Jones Industrial Average added 0.2%. On Monday, the S&P 500 dipped 0.2% and the Dow industrials fell 0.3%. The Nasdaq composite rose 0.4%.
In Asian trading Tuesday, Japan's benchmark Nikkei 225 dropped 2.2% to finish at 27,222.04, extending losses from the day before.
