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European stocks slide 2.5% as Credit Suisse craters and banks briefly halted from trade: Live updates

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European stock markets were sharply lower Wednesday, with banking stocks in deep negative territory amid the global Silicon Valley Bank fallout and more bad news for Credit Suisse.

The pan-European Stoxx 600 index was down 2.5%, with all sectors trading in the red.

Banking stocks plunged 6.3%, followed by the energy sector, which was down 5.4%.

Credit Suisse dropped to the bottom of the blue-chip index after the bank’s biggest lender, Saudi National Bank, said it would not be able to offer it more financial help.

Its shares were down 16% at 3:00 p.m. London time after falling as much as 30% earlier in the session.

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In an interview with CAN quoted by Reuters, CEO Ulrich Koerner said: “Our capital, our liquidity basis is very, very strong.”

“We fulfill and overshoot basically all regulatory requirements,” Koerner added.

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Credit Suisse share price.

The Credit Suisse fall caused a wider banking sell-off to resume after the sector staged a modest recovery Tuesday. BNP Paribas, Societe Generale, Commerzbank and Deutsche Bank were among the banks to post steep declines.

Several bank stocks, including Credit Suisse, were temporarily halted from trade during the morning due to the steep losses. Deutsche Bank, Societe Generale, Commerzbank and UBS declined to comment.

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That comes despite buoyant trade in Asia-Pacific markets overnight and on Wall Street Tuesday, where U.S. bank stocks rebounded on optimism that the contagion risk from Silicon Valley Bank’s collapse was contained. U.S. stock futures were lower early Wednesday.

Meanwhile, U.K. Finance Minister Jeremy Hunt unveiled his “Spring Budget,” which includes extensions of the cut to fuel duty and of energy support measures. It comes as teachers, civil servants, rail workers and junior doctors strike over pay and working conditions.

Hunt also said the British economy was “proving the doubters wrong” as gilt rates, mortgage rates and inflation come down, and that it would avoid a technical recession.

Source: CNBC

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