European markets were trading 2.5% lower Monday morning as global investors focused on the fallout from the Silicon Valley Bank collapse.
The pan-European Stoxx 600 index was down 2.54% at 10.45 a.m. London time, with all sectors and major bourses in negative territory. Bank stocks led losses with a 6% drop, followed by insurance and financial services.
The slide in stocks comes despite news that HSBC had agreed to buy the British arm of the troubled U.S. tech startup-focused lender for £1. Customer deposits will be protected as part of the deal.
Shares in HSBC fell 3.5%, while Commerzbank slid around 12% and Credit Suisse was down 9.4%.
Across the Atlantic, U.S. stock futures also turned negative after regulators announced a plan to backstop all the depositors in SVB and make additional funding available for other banks.
On Friday, Silicon Valley Bank was taken over by regulators after massive withdrawals a day earlier created a bank run. All SVB depositors will have access to their money starting Monday, according to a joint statement from the Treasury Department, Federal Reserve and the FDIC.
Elsewhere Sunday, U.S. regulators shut down New York-based Signature Bank, a big lender in the crypto industry, in a bid to prevent the spreading banking crisis.
Asia-Pacific markets traded mixed on Monday as investors reacted to the latest move by U.S. regulators to stem further systemic risk.
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