From Wall Street to Asia: Bank Fears Trigger Global Stock Slide

A wave of fear that started on Wall Street spread to Asia and Europe, triggering a global stock slide led by banking shares. Japan’s Nikkei 225 fell 1.6%, Hong Kong’s Hang Seng dropped 2%, and major European indices also closed deep in the red.
The panic was ignited by two US regional lenders, Zions and Western Alliance, which revealed significant bad loans. This news, while seemingly small, was enough to spook investors already worried about the impact of high interest rates on the economy.
The banking sector bore the brunt of the losses. In Europe, the industry lost €37.4 billion in value, with major banks like Barclays, Deutsche Bank, and Banco Sabadell falling around 6%.
The episode resurrected fears of the 2023 banking crisis. In a classic “risk-off” move, investors dumped stocks and flocked to safety, sending gold to a record high of $4,378 an ounce and causing the VIX “fear index” to surge.