Saudi Press

Saudi Arabia and the world
Saturday, Feb 28, 2026

European stocks slip as banking turmoil keeps sentiment fragile

European stocks slip as banking turmoil keeps sentiment fragile

European stock indexes edged lower on Friday after an early recovery ran out of steam, while Wall Street futures were mixed as investor sentiment remained fragile after a week of turbulence.
In a crisis that began with the collapse of US-based Silicon Valley Bank last Friday, risk appetite plunged earlier in the week as investors lost confidence in regional banks in the US and Credit Suisse in Europe. The tumultuous week saw bond yields drop as investors lowered their expectations for future rate rises.

Risk appetite showed signs of recovery on Thursday, helped by Credit Suisse saying it would borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank and, later in the day, a group of major banks injecting $30 billion in deposits into First Republic Bank, a mid-sized US lender.

Still, analysts say the worry about a possible banking crisis is far from over.

Credit Suisse’s chief executive said on Friday the bank was working hard to stem customers outflows, although this could take time. Credit Suisse shares resumed their decline.

European Central Bank supervisors do not see contagion for euro zone banks from the market turmoil, a source familiar with the content of an ad hoc supervisory board meeting earlier this week told Reuters.

At 1207 GMT, the MSCI world equity index, which tracks shares in 47 countries, was up 0.3 percent on the day.

Europe’s STOXX 600 was down 0.1 percent and set to lose 1.9 percent on the week overall.

London’s FTSE 100 was little changed. Wall Street futures were mixed.

The US 2-year Treasury yield, which is the most sensitive to shifts in interest rate expectations, was up 1 basis point on the day at 4.1426 percent — still closer to Wednesday’s six-month low of 3.72 percent than the peak of 5.084 percent it hit the previous week, which had been its highest since 2007.

The European Central Bank raised rates by 50 bps on Thursday, sticking to its pledge to fight inflation even as some investors called for a pause in the rate-hiking cycle until the banking turmoil eases.

The benchmark German 10-year yield was down 5 bps at 2.193 percent .

Markets are pricing in a 25 bps increase by the US Federal Reserve when it meets next week, down from previous expectations for a 50 bps increase.

Fed data on Thursday showed that banks sought record amounts of emergency liquidity in recent days, which in turn helped undo months of central bank effort to shrink the size of its balance sheet.

“The fact that the Fed has been very proactive in terms of opening the liquidity tap is potentially useful and that’s stabilized things in the short term at least,” said Guillaume Paillat, multi-asset portfolio manager at Aviva Investors.

“It’s potentially a more stable environment, because it feels like we’ve passed the crisis point and things should normalize a bit.”

Against a basket of currencies, the US dollar was down 0.2 percent. The Australian dollar, seen as a liquid proxy for risk appetite, was up 0.6 percent on the day at $0.6695.

The British pound and the euro were both up 0.2 percent .

Oil prices benefited from the initial resurgence of risk appetite, before paring gains, with Brent crude futures up 0.4 percent and US West Texas Intermediate crude up 0.7 percent after having hit their lowest in more than a year earlier in the week.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Emerging Saudi–Turkish Alignment Draws Attention as Potential Strategic Challenge for Israel
Saudi Arabia Unveils $100 Billion Technology Investment Fund to Accelerate Post-Oil Diversification
US Lawmakers Question White House Consideration of Saudi Nuclear Enrichment Framework
Saudi Arabia Reaffirms Firm Commitment to Two-State Solution in Renewed Diplomatic Push
Saudi Arabia Launches Central Kitchen in Gaza to Deliver 24,000 Meals a Day
Saudi Arabia Announces $346 Million Support Package for Yemen in Renewed Humanitarian Push
Saudi Investors Increase US Equity Exposure Amid Domestic Market Weakness
Saudi Arabia Unveils Major Desert Gas Development in Strategic Shift Toward Diversified Energy Growth
Satellite Images Indicate Increased Aircraft Presence at Saudi Airbase Hosting US Forces
Telephone Diplomacy Sparks Tensions Between Two Key US Allies After Trump Intervention
Asian LPG Prices Surge After Damage Forces Saudi Aramco Export Disruptions
Saudi Arabia Unveils $100 Billion AI Infrastructure Fund to Challenge US and China
Saudi Stocks Close Lower as Tadawul All Share Index Falls 1.28 Percent
Saudi Arabia Launches Smart Mapping System to Enhance Pilgrim Experience at Holy Sites
Cristiano Ronaldo Acquires 25 Percent Stake in Saudi-Owned Spanish Club Almería
U.S.–Saudi Relations Balance Transactional Deal-Making with Expanding Strategic Ambitions
Israel’s President Herzog Signals Cautious Message on Saudi Ties at UAE Iftar in Tel Aviv
United States and Saudi Arabia Strengthen Security Ties with Joint Explosive Ordnance Disposal Exercise
Saudi Arabia Responds to Israel–UAE Moves in Somalia as Regional Rivalries Intensify
Saudi Arabia Showcases Expanding Defense Ambitions at World Defense Show 2026
SECRETARY RUBIO on IRAN: Iran poses a very great threat to the United States, and has for a very long time.
Larry Summers, the former U.S. Treasury Secretary, is resigning from Harvard University as fallout continues over his ties to Jeffrey Epstein.
U.S. stocks ended higher on Wednesday, with the Dow gaining about six-tenths of a percent, the S&P 500 adding eight-tenths of a percent, and the tech-heavy Nasdaq climbing roughly one-and-a-quarter percent.
Nvidia posted better than expected results for the January quarter on Wednesday and forecast current quarter revenue above market estimates.
Saudi Arabia’s Coffee Renaissance Gains Momentum as Investment and Heritage Drive Industry Growth
Saudi Shipping Leader Bahri Expands Fleet as Tanker Rates Approach $200,000 a Day
Saudi Arabia Advances First National Urban Policy Through High-Level Leadership and Institutional Alliances
Major Life Sciences Summits to Spotlight Saudi Arabia’s Rise as Regional Biotech and Pharma Hub
Saudi Arabia Reframes Red Sea and Horn of Africa Strategy Amid Rising Security and Trade Stakes
Saudi Arabia Recalibrates Its Role in Shifting Regional and Global Power Dynamics
Saudi Retail Signals to Global Brands: Localise or Lose Ground in a Rapidly Evolving Market
Saudi Arabia Looks to Human Capital Investment to Unlock Demographic Dividend
Saudi Arabia and Iran Increase Oil Exports Amid Escalating Middle East Tensions
Saudi Data Protection Authority Intensifies Enforcement Under Personal Data Law
Saudi Arabia Raises Oil Output and Exports Amid Contingency Planning Over Iran Tensions
USS Gerald R Ford Arrives in Souda, Crete
Saudi Sovereign Wealth Fund Unit Expands Push Into Global Private Credit
Saudi Arabia Eases Headquarters Rules to Attract More Foreign Firms
Saipem Secures Major Offshore Pipeline Contract in Saudi Arabia
Saudi Arabia’s Targeted Oil Export Cuts to the US Seen as Strategic Signal Amid Global Supply Glut
Nemetschek Arabia Signs Strategic MoU with Saudi Facility Management Association
Gulf Markets Close Mixed as Saudi Shares Slip on Budget Deficit Concerns
Saudi Arabia Posts Largest Quarterly Budget Deficit in Years Amid Weaker Oil Revenues and Higher Spending
U.S. Lawmaker Urges Safeguards on Saudi Civil Nuclear Deal as Trump Administration Advances Agreement
Saudi Arabia and Gulf Allies Rally Behind Kuwait in Escalating Maritime Border Dispute with Iraq
Universal Aviation Secures License to Operate and Manage New General Aviation Terminal in Dammam
Tucker Carlson’s Saudi Arabia Remarks Spark Debate Over Israel Stance
GCC Secretary-General Holds Talks with EU Ambassador in Riyadh
Gulf States’ AI Investment Drive Seen as Strategic Bet on Technology and U.S. Security Ties
African Union Commission Chair Meets Saudi Vice Foreign Minister to Deepen Strategic Cooperation
×