Oil prices plummet, breaking below $70!
Yesterday, the international crude oil market experienced a decline for three consecutive trading days, with the decline significantly accelerating after the start of the European trading session in the afternoon. Correspondingly, European stock markets began to fall immediately after opening, and by the end, the main stock indexes of several major countries had all fallen by more than 3%.
Robert Kiyosaki, the author of the Rich Dad Poor Dad series, pointed out that Credit Suisse from Europe may be the next bank to go bankrupt. It is evident that the crisis in the United States has begun to ferment in Europe.
01, Sharp Decline
Last week, several banks in the United States went bankrupt successively, among which the most impactful was undoubtedly Silicon Valley Bank. However, the panic sentiment in the U.S. investment market seems to have been alleviated. The Silicon Valley Bank incident has finally been eased with the help of multiple companies, and since the 13th, depositors have been able to withdraw their funds.
However, it is clear that depositors' concerns about smaller banks are growing. Within just a few days, Wells Fargo has seen an influx of $1.5 billion in deposits, and a nationwide movement of deposits is underway in the United States.
Advertisement
The situation in the United States seems to have improved slightly, but Europe is becoming more dangerous.Last night at the close, the stock market indices of the UK, France, and Germany all fell by more than 3%, and the stock market of another major economy, Italy, saw a drop approaching 5%.
While European stock markets were plummeting, the global crude oil market also experienced a surprising crash.
Previously, oil prices had been fluctuating within a range of $70 to $80, but yesterday, the WTI international crude oil price suddenly plummeted, breaking through the $70 mark, and at its lowest, it even dipped down to $65.65.
This is already the lowest price since the end of 2021.
Similar trends were also observed in the changes of Brent crude oil prices.
02
Now, the most concerning issue is still the banks.
Yesterday, a bank index on the Stoxx fell by 6.9%, with the most significant factor being the panic selling of Credit Suisse, which caused alarm throughout the entire banking sector.
In the European market yesterday, the share price of Credit Suisse fell by 24%, and subsequently, in the US stock market, the bank's share price also fell by 14%.
Robert Kiyosaki, who is well-known to domestic readers for authoring the Rich Dad Poor Dad series, shared his personal views on this event. He believes that the US bond market is currently collapsing, and the next bank likely to close could very well be Credit Suisse.Many market analysts are concerned that the risks in the United States could potentially have a global impact, with a particularly significant effect on Europe, which may have been the main reason for the larger decline in European stock markets last night.
There are also concerns among domestic investors that this could have a certain degree of impact on China as well. The first to be affected are some of our country's enterprises, including those listed on the A-share or Hong Kong stock markets, which have recently issued relevant announcements to clarify the amount or proportion of deposits held at Silicon Valley Bank.
Taking Jiu'an Medical as an example, the amount of deposits at Silicon Valley Bank accounts for about 5% of the company's cash and financial assets. The majority of other assets are placed in large financial institutions such as ICBC, Goldman Sachs, JPMorgan Chase, and Morgan Stanley, ensuring asset safety and minimal risk.
There are also a few listed companies whose announcements involve assets of less than 5%, and some companies have issued clarification announcements stating that they have no deposits at Silicon Valley Bank at all.
Since the bankruptcy news broke, within less than 48 hours, the U.S. government has announced that all deposits can be withdrawn, thus, the impact on domestic enterprises is very minimal.
As for ordinary bank depositors in China, there is even less to worry about. The risk in our country's banking sector is very low, and the deposit insurance system has been in operation for many years. Deposits placed in banks in a regular manner do not need to be of great concern.
The impact on China is mainly reflected in the possibility that if a U.S. bank goes bankrupt and further evolves into a global economic crisis, it will, of course, also drag down China's economic performance.
Leave a Comment