With the failure of SVB Financial and rival Signature Bank, problems at Credit Suisse have increased pressure on the banking industry, removing any relief from the emergency measures taken by US authorities to stop a contagion.
As Credit Suisse’s top shareholder stated it couldn’t provide extra financing, the bank’s U.S.-listed shares fell to a record low, sparking a panic among European lenders and placing pressure on American institutions as well.
“Anything negative from any highly visible institution, in this case Credit Suisse, is going to have ripple effects across the financial sector,” said Michael James, managing director of equity trading at Wedbush Securities.
Retail sales decreased 0.4% last month after increasing by 3.2% in January, contrary to expectations of 0.3% loss from economists surveyed by Reuters.
According to a different survey, American producer prices surprisingly decreased in February, providing some encouraging indicators for the fight against inflation.
The data, which followed a reading on Tuesday showing a decrease in consumer inflation last month, fueled expectations of a less hawkish Fed policy since a slowing in demand may encourage the central bank to reduce the rate at which it raises interest rates.
