The failure of Silicon Valley Bank has caused a ripple effect in global financial markets, with investors downgrading their forecasts for further interest rate rises and selling bank stocks globally. Government bond prices have soared, with fund managers betting that the US Federal Reserve will not raise interest rates at its next scheduled monetary policy meeting this month. Bank stocks have taken a significant hit, with Europe\’s Stoxx banking index falling 5.7%, taking its decline since last week to just over 11%. Futures contracts tracking Wall Street’s S&P 500 and Nasdaq 100 were up 0.2% and 0.6%, respectively. However, futures in big US banks fell about 2%. Goldman Sachs no longer expected any increase at the Fed\’s meeting ending on March 22 \”in light of recent stress in the banking system\”. Analysts have raised concerns about the impact the failure of the bank might have on inflation and the central banks\’ handling of interest rates.
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