Investors dumped oil producers and bank shares and fled to safe haven assets such as gold and bonds as the collapse of Silicon Valley Bank rocked global markets.
That followed a similar pattern in the US, where traders are now expecting around 0.75 percentage points of Federal Reserve rate cuts implied by year-end.
Shares of SVB’s peer Signature Bank, which was also shut down by regulators, were halted from trading.P Banking Index dropping 7 per cent in its largest one-day loss since June 2020. JPMorgan, Citigroup, and Wells Fargo all lost ground. The regional lenders were hit harder; Bank of Queensland fell 2.9 per cent to $6.47, Bendigo and Adelaide Bank 1.6 per cent to $8.90, and Suncorp 3.6 per cent to $11.91.
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