The ABD Banking Crisis Raised Concerns in Global Markets

Global Markets on Alert over US Bank Crisis

Wall Street stocks experienced a sharp decline as fears about economic credit quality increased following significant losses by two regional banks due to bad loans. The S&P 500 index fell by 0.63%, while the Nasdaq 100 declined by 0.4%, leaving investors in deep thought.

Asian Markets and MSCI Index

The drop in US and European futures indices negatively impacted Asian markets as well. The MSCI Asia Pacific Index lost 0.8%, with financial companies among the hardest-hit sectors.

Crash in Digital Assets

After a week of decline, the total value of digital assets decreased by hundreds of billions of dollars. Bitcoin, which is expected to act as a safe haven during crises, stabilized around 109 thousand dollars, failing to show its anticipated performance. On October 6, it had reached an all-time high of 126,251 dollars.

Trade Tensions and Oil Prices

Increasing US-China trade tensions led to record levels of liquidation in the markets, adversely affecting oil prices. Oil prices are heading for their third consecutive weekly decline. Brent crude trades at 61 dollars per barrel, while West Texas Intermediate is above 57 dollars.

Gold as a Safe Haven

The rising concerns and increased demand for safe havens have driven gold and silver prices to record levels. Gold rose by 1.2% to 4,379.93 dollars per ounce, influenced by expectations of possible interest rate cuts by the Fed.