The US S&P 500 benchmark was marginally up after Donald Trump appeared to indicate that high tariffs on China may not be “sustainable”. <\/p>\n
On Thursday, Zions Bank said it would write off a $50m loss on two loans, while Western Alliance disclosed it had started a lawsuit alleging fraud.<\/p>\n
“Pockets of the US banking sector including regional banks have given the market cause for concern,” said Russ Mould, investment director at AJ Bell.<\/p>\n
“Investors have started to question why there have been a plethora of issues in a short space of time and whether this points to poor risk management and loose lending standards.”<\/p>\n
“Investors have been spooked,” he added, saying that while there was no evidence of any issues with UK-listed banks, “investors often have a knee-jerk reaction when problems appear anywhere in the sector”.<\/p>\n
Bank shares in Europe were also hit, with Germany’s Deutsche Bank ending the day 6% lower, and France’s Societe Generale closing down 5%.<\/p>\n
The main stock market in Germany closed down 1.8%, while the Cac 40 in Paris finished the day down just 0.2%.<\/p>\n
Asian markets fell earlier on Friday. Japan’s Nikkei index closed down 1.4% and in Hong Kong the Hang Seng Index was 2.5% lower.<\/p>\n
But shares of some of the US banks hit hardest on Thursday clawed back some ground.<\/p>\n
In early afternoon trade on Friday, shares in Zions Bank were up about 4%, following its 13% fall on Thursday. Shares in Western Alliance Bancorp, which had dropped almost 11%, were also up nearly 2%.<\/p>\n","protected":false},"excerpt":{"rendered":"The US S&P 500 benchmark was marginally up after Donald Trump appeared to indicate that high tariffs on…\n","protected":false},"author":2,"featured_media":82683,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[114,184,85,46],"class_list":["post-82682","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/82682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=82682"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/82682\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/82683"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=82682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=82682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=82682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}