Many European banking stocks halted trading after heavy losses: Live updates

European banks are being pulled down by the collapse of Silicon Valley Bank, the path of interest rates, and continued concerns about banks’ margins and asset qualities, said Russ Mould, investment director at AJ Bell.

But Credit Suisse is being “shunned by risk-averse investors” amid the ongoing turmoil.

“Investors were bullish on banks because of an economic soft landing, easing inflation and expectations of a pause or pivot in central bank policy,” he said in emailed comments.

“That pivot may come but not for the reasons investors were expecting, given the uncertainties induced by the collapse of the SVB and the possibility that central banks may have already pushed rates to levels that could lead to collapse of either the economy or the financial system.” (or both) coming down. Unexpected stress.

“As a result, investors are cutting risk aversion and a scandal-ridden bank is one place they may be inclined to avoid in such circumstances.”

-Jenny Reed

Credit Suisse shares were down 23.79% around 11 a.m. London time. Trading was halted several times by the stock exchange operator due to fall in the stock.

The price had settled at $1.7430 after 11 am London time.

-Hannah Ward-Glanton

Shares of several European banks, including Credit Suisse, Societe Generale and Italy’s Monte dei Paschi and Unicredit, were halted from trading due to the fall in prices.

Credit Suisse was down as much as 21% as of 10.33 a.m. London time, followed by Societe Generale, which dropped 9.9%.

-Hannah Ward-Glanton

Shares of beleaguered bank Credit Suisse hit another all-time low for the second day in a row, down 10% around 9.47am London time on Wednesday.

Investors are assessing the impact of the bank’s Tuesday announcement that it had found “material weaknesses” in its financial reporting procedures for 2022 and 2021.

– Hannah Ward-Glanton and Elliott Smith

Factors including power cuts in South Africa, war in Ukraine and increased production of hybrid cars could cause platinum prices to rise in 2023.

Investment bank UBS readjusted its price forecast for platinum in 2023, forecasting that the price of the precious metal will hit $1,150 an ounce for June, up from a previous estimate of $1,100, and $1,200 an ounce for December. Will reach

“The key point is that we are expecting a significant year-over-year increase of 24% in terms of aggregate demand,” Ed Stirk, director of research at the World Platinum Investment Council, told CNBC. 13% compared to last year.

Full story is available here.

-Hannah Ward-Glanton

Shares of French logistics company Bollore were up 8% in early trade after the company decided to launch a cash tender offer on its shares.

According to a company press release, it will aim to acquire a maximum of 288.6 million shares, representing 9.78% of its share capital.

IG Group fell below the Stoxx 600 Index in early trading after third-quarter net trading revenue was lower on market volatility and the company experienced a 5% drop in active client count.

The online trading organization reported 7% lower revenue for the most recent quarter compared to the comparable quarter last year.

European equity markets opened lower with banking stocks still in negative territory following the collapse of the global Silicon Valley bank.

The pan-European Stoxx 600 index was down 0.4% at the start of trading, with most sectors and major markets trading in the red. Retail stocks led the losses, falling 1.9%, followed by oil and gas stocks, down 1.4%. Banking shares fell 0.5 per cent.

-Hannah Ward-Glanton

German carmaker BMW on Wednesday said it expects an EBIT (earnings before interest and taxes) margin of between 8-10% in 2023 for its automotive range, with deliveries expected to increase slightly from 2022. Selling prices are targeted to remain at a “stable” level.

The company reaffirmed the full-year 2022 results it reported last week, including EBIT of 10.6 billion euros ($11.4 billion) for its automotive segment, with a margin of 8.6% last year.

BMW is undertaking a widespread rollout of battery-electric vehicles and estimates it will reach more than 50% BEV share before 2030. The company’s BEV share is expected to reach 15% in 2023.

, Ruxandra Iordache

UBS named several Chinese stocks that it says remained “resilient” during a period of heightened geopolitical tensions between the United States and China.

In a note to clients on March 13, the Swiss bank said it expected more volatility in the market when possible US restrictions on investment in certain Chinese sectors were announced.

CNBC Pro subscribers can read more about UBS’s stock picks here.

Ganesh Rao

Official data showed that China’s industrial production grew by 2.4% in the January to February period.

In line with expectations, retail sales grew 3.55% for the same period.

China’s real estate investment saw growth of 5.5% in the first two months of the year, which exceeded expectations of economists polled by Reuters, which predicted a 4.4% increase.

China’s onshore yuan weakened after the data release and traded at 6.8822 against the US Dollar.

The People’s Bank of China kept the one-year medium-term credit facility lending rate at 2.75% for 481 billion yuan.

Worrying about contagion from the collapse of Silicon Valley Bank? Veteran strategist Kenny Polkari believes that the impact of an SVB failure would be fairly limited.

While investors are mostly skipping the banking sector in the short term, Polkari sees “some very interesting opportunities” in the space, as well as other areas of the market.

Pro subscribers can read more here.

Xavier Ong

Markets have had a rocky march so far, as inflation fears return and the collapse of Silicon Valley Bank sent investors into risk-off mode.

Against this backdrop, CNBC Pro used FactSet to examine stocks on the MSCI World Index and S&P 500 that are well-positioned to withstand volatility and are expected to outperform going forward.

CNBC Pro subscribers can read more about the shares here.

– Weizen Tan

Moody’s Investors Service on Monday changed its outlook on the US banking system to negative from stable, citing a “rapidly deteriorating operating environment”.

The move comes as the sectors reel after the closures of Silicon Valley Bank and Signature Bank. Banking stocks recovered on Tuesday after falling in the past few sessions as the shutdown raised concerns of contagion.

“Our outlook on the US banking system has changed from stable to negative to reflect a sharp deterioration in the operating environment following the deposit runs at Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank (SNY) and the SVB failures. SNY,” Moody’s said in a report.

– Alex Haring, Jeff Cox

The Consumer Price Index rose 0.4% in February from the previous month, matching the Dow Jones estimate. The 6% year-over-year growth was also in line with expectations.

— Fred Imbert

European markets have started mixed on Wednesday.

According to IG data, UK’s FTSE 100 index is expected to open 7 points higher at 7,636, Germany’s DAX up 21 points at 15,242, France’s CAC up 6 points at 7,144 and Italy’s FTSE MIB down 20 points at 26,312.

Prudential, Balfour BT, Lanxess, E.One, Inditex and H&M are set to earn. On the data front, Euro zone industrial production figures for January are due to be released.

– Holly Elliot