Global Financial Stocks Lose $465 Billion In 2 Days On SVB Impact Worry
NDTV
The aggregate market value of companies included in the MSCI World Financials Index and the MSCI EM Financials Index has dropped about $465 billion since Friday.
Global financial stocks have lost $465 billion in market value in two days as investors cut exposure to lenders from New York to Japan in the wake of Silicon Valley Bank's collapse.
Losses widened today, with the MSCI Asia Pacific Financials Index dropping as much as 2.7% to the lowest since Nov. 29. Mitsubishi UFJ Financial Group Inc. slid as much as 8.3% in Japan, while South Korea's Hana Financial Group Inc. fell 4.7% and Australia's ANZ Group Holdings Ltd. lost 2.8%.
There are concerns that financial firms could see an impact from their investments in bonds and other instruments on the SVB-induced worry. Treasury yields plunged Monday amid expectations the Federal Reserve will hold off raising rates due to turmoil in the banking system.
"The financial markets are walking on eggshells," John Woods, Credit Suisse Group AG's chief investment officer for Asia-Pacific, said in an interview with Bloomberg Television. "We really need to know precisely what impact this is likely to have around the broader market. My sense is that the Fed will probably pause because I think this is largely to do with liquidity risk."
