Stocks slide in Europe amid banking worries

On Wednesday, European stock markets were facing a sharp decline as fears re-emerged regarding the global banking sector. At midday in London, the pan-European Stoxx 600 index fell by 0.84%, with healthcare stocks falling by 1.5%, industrials falling by 1.7%, and tech declining by 1.6%.

Standard Chartered, a London-listed bank, reported a pre-tax profit increase of 21%, beating expectations. Its shares were up slightly, while the European banking sector fell by 0.5%.

Meanwhile, Asia-Pacific markets had a mixed performance after renewed banking fears surfaced on Wall Street. This came after First Republic Bank’s shares fell more than 49% on Tuesday following its latest quarterly results announcement. The regional bank stated that deposits fell by 40% to $104.5 billion in the first quarter.

The news of the decline in deposits put pressure on the US markets on Tuesday, though stock futures rose overnight. Investor sentiment is being influenced by concerns about the strength of the global banking sector, particularly in the aftermath of the COVID-19 pandemic. Investors are closely monitoring the banking sector, particularly with the upcoming earnings reports and the expectations of rising interest rates.