By Huw Jones
LONDON, March 10 (Reuters) – Global stocks hit a two-month low on Friday as investors dumped bank papers fearing contagion after a Silicon Valley Bank capital raise, mass figures payroll in the United States also being in the spotlight ahead of the Federal Reserve meeting later this month. .
* Oil was heading for its biggest weekly decline in five years on fears that sharp hikes in US interest rates could slow growth and hurt demand for fuel.
* The yen fell after the Bank of Japan maintained stimulus, while the dollar held its breath awaiting US data.
* The MSCI global stock index fell 0.6% to its lowest level since mid-January, while the pan-European STOXX 600 index fell 1.6%.
* Silicon Valley Bank tried to reassure tech clients on Thursday as its shares plunged 60% as it tried to raise funds to fill a $1.8 billion hole caused by the sale of a portfolio deficit bondholder. .
* The news added to nervousness about the shutdown of Silvergate, a cryptocurrency-focused lender.
* Concern has spread to European lenders. The European bank stock index fell 4.2% to its lowest level in more than a month, and Credit Suisse hit a record low.
* Patrick Spencer of RW Baird said it was another sign of how rising borrowing costs and the end of cheap money are weighing on markets. “We are taking advantage of the panic-driven sell-off and re-pricing some regional banks,” he said.
* U.S. stock index futures were trading slightly lower, though U.S. nonfarm payrolls numbers likely set the tone for the open on Wall Street.
* The yen weakened after the Bank of Japan opted to suspend stimulus at Governor Haruhiko Kuroda’s latest meeting, as expected. The Japanese currency fell nearly 0.4% to 136.615 units to the dollar, after a sharp drop of 0.6%.
* The dollar remained stable and the yield on short-term US Treasuries weakened slightly.
* In commodities, Brent futures fell 0.4% to $81.25 an ounce, while spot gold rose 0.2% to $1,835 an ounce .
(Reporting by Huw Jones, Tom Westbrook, Kevin Buckland; additional reporting by Scott Murdoch; Spanish editing by Carlos Serrano)