European markets closed sharply lower Monday as the fallout from the Silicon Valley Bank collapse sent banks to their worst day in more than a year.
The pan-European Stoxx 600 index provisionally closed down 2.34%.
Bank fell 5.65%, their worst day since March 4, 2022 according to Eikon data, when they fell 6.66% on warnings their asset quality would be impacted by the Ukraine war.
European markets
The slide in stocks comes despite news that HSBC had agreed to buy the British arm of the troubled U.S. tech startup-focused lender for £1. Customer deposits will be protected as part of the deal.
Shares of HSBC fell 3.95%, while Commerzbank slid around 12% and Credit Suisse was down 9.4%.
On Friday, Silicon Valley Bank was taken over by regulators after massive withdrawals a day earlier created a bank run. All SVB depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, Federal Reserve and the FDIC.
Elsewhere Sunday, U.S. regulators shut down New York-based Signature Bank, a big lender in the crypto industry, in a bid to prevent the spreading banking crisis.
Asia-Pacific markets closed mixed on Monday as investors reacted to the latest move by U.S. regulators to stem further systemic risk.
U.S. stocks initially fell but moved higher as investors bet the Federal Reserve may pause rate hikes.