European stock markets continue without rebounding before the bank’s fall

March 13 (Reuters) – European stocks fell on Monday as banking stocks continued to plunge in the region, despite the intervention of U.S. authorities to stem the fallout from the sudden crisis at Silicon Valley Bank (SVB).

The pan-European STOXX 600 index was down 0.6% at 0812 GMT, after closing Friday at its lowest in more than five weeks.

However, Wall Street futures rose after the Federal Reserve and US Treasury announced a series of measures to stabilize the banking system and said SVB depositors would have access to their deposits on Monday. (.NOT)

European banking stocks fell 1.1%, after their worst two-day fall in more than five months, on concerns about the resilience of the sector’s balance sheet in the face of the SVB crisis and the outlook for interest rates. interest.

Investors now see a nearly 90% chance that the Federal Reserve will raise interest rates by 25 basis points (bps) next week, a sharp reversal from the 50bp hike they had previously anticipated at the suite of strong economic data. .

Goldman Sachs said on Sunday it does not expect a rate hike in light of recent stress in the financial sector.

For its part, the European Central Bank could raise its rates by 50 basis points this week.

HSBC fell 0.1% after the UK bank said it would buy SVB’s UK subsidiary for £1, saving a key bank for UK tech start-ups.

(Reporting by Sruthi Shankar in Bengaluru; Editing in Spanish by Benjamin Mejias Valencia)