🗓 Friday, October 17, 2025
► Europe sharply lower – banking and credit fears weigh on sentiment
European equities declined sharply as renewed concerns over US regional banks and credit quality spread globally. The European Stoxx Banks Index fell nearly 3%, with Deutsche Bank, Barclays, and Sabadell leading losses. Stoxx 600 -1.4%, DAX -1.9%, CAC 40 -0.8%, FTSE 100 -1.3%, FTSE MIB -1.9%, IBEX -0.9%. Bund 10Y 2.56% (-1bp), UK 10Y 4.53% (+2bps). EUR/USD 1.169 (+0.05%), GBP/USD 1.344 (+0.1%), USD/JPY 150.3 (-0.1%). Investors turned defensive after two US regional lenders disclosed major credit losses tied to potential fraud cases, reviving memories of prior sector instability. Defensive sectors and gold outperformed, while cyclical and financials lagged.
► Wall Street lower – regional bank concerns trigger sell-off
US stocks fell as fresh regional bank losses reignited credit concerns and spurred a flight to safety. S&P 500 -0.5%, Nasdaq 100 -0.7%, Dow -0.3%. Zions Bancorp (-13%) and Western Alliance (-11%) plunged after reporting bad loans, prompting sharp declines across the regional banking sector (KRE ETF -6.3%). Broader markets remained volatile with heavy option expiries ($3.4T). US 10Y 3.98% (flat; after a sharp decline and falling below 4% yesterday. Despite turbulence, Fed officials maintained their dovish tone, reinforcing expectations for two more cuts this year.
► Asia lower – banks & China drag regional sentiment
Asian equities closed mostly lower as Wall Street’s renewed volatility and US bank concerns weighed on risk sentiment. Nikkei -1.4%, Hang Seng -2.5%, Shanghai -2.0%, Shenzhen -3.0%, Kospi flat, Taiwan -1.3%, ASX -0.8%, Nifty +0.5%. USD/JPY 150.3 (-0.1%). Financials and tech names dragged indices lower, while modest strength in India and South Korea provided limited offset. Weak Chinese data and renewed uncertainty around trade also pressured markets, while gold’s surge highlighted global safe-haven demand.
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