Silicon Bank’s stock market collapse sends Spanish banks reeling on the IBEX 35

Spanish banks collapsed on the stock market, with falls of more than 3.50 %, dragging down the Spanish selective IBEX 35, following the collapse of Silicon Valley Bank after announcing a capital increase of more than 1.7 billion dollars to close losses of 1.8 billion.

Half an hour after the opening of the Spanish stock market, the banks lead the falls of the selective IBEX 35, with losses of 5.22 % for Banco Santander, 4.14 % for Bankinter, 3.95 % for Banco Sabadell, 3.88 % for Unicaja, and 3.69 % for BBVA.

CaixaBank, which lost the least, fell 2.78% and its share price stood at 3.95 euros.

Santander shares are at 3.57 euros, Bankinter at 6.50 euros, Sabadell at 1.25 euros and Unicaja at 1.14 euros.

The IBEX 35 has lost 192.1 points, or 2.04%, to 9,232.4 points. So far this year, the IBEX has reduced its gains to 12.21 %. So, US futures anticipate a bearish session.

Renta 4 analysts also highlight fears about banks such as Silvergate Capital Corp and SVB Financial Group in the US in a context of sharp interest rate hikes.

For their part, Bankinter analysts have pointed out that the situation of banks on the stock market today would only improve if the US employment data, which will be released at 14:30, “comes out weak”, something they consider “unlikely”.

Silicon Valley Bank’s capital increase, which sent its shares plummeting by more than 60 %, raises fears about financial stability and leads to a withdrawal of deposits, which drags down the financial sector as a whole.

The cryptocurrency market has also been affected by the fall of Silicon Valley Bank, as well as by the future closure of Silvergate Bank, and bitcoin, the most widely known and traded cryptocurrency, falls by 8.26% and trades at 19,889 dollars.