Banking tsunami reaches European coast
European bank share depreciated, customers withdraw funds
European banks ended up in the red on Friday. Renewed turmoil in the banking sector in the United States caused a dip in investor confidence. The US First Republic Bank plummeted on Wall Street again and seems to have to be rescued by the authorities. ING fell 1.7 percent on the Damrak and was the largest in the AEX. ABN AMRO also fell, by 0.6 percent.
In Frankfurt, Commerzbank lost 4.4 percent and in Paris, BNP Paribas fell 0.3 percent. NatWest fell 3.8 percent in London after publication of the quarterly figures. Customers withdrew 20 billion pounds of funds from the British bank in the past quarter. Barclays lost 1.3 percent in London.
In addition to the unrest in the US, the upcoming interest rate decisions also play a role. Next week, both the European Central Bank (ECB) and the Federal Reserve will look at whether interest rates need to be raised further to curb inflation.
Investors also saw disappointing growth in the eurozone economy. It grew by 0.1 percent in the first quarter compared to a quarter earlier, while growth of 0.2 percent was expected. Germany, the largest economy in the euro area, is stagnating.
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