Quilter Cheviot|Weekly Comment

SVB failure sours sentiment

Our Weekly Market Overview from Quilter Cheviot

By Richard Carter, Head of Fixed Interest Research

Global equity markets posted their worst weekly return in five months last week, with the MSCI All Country World Index declining 3.5%. The selling accelerated on reports of the collapse of Silicon Valley Bank (SVB), a Californian financial institution that played a key lending role for technology start-ups.

The bank’s failure, the second-largest bank failure in US history, is the surest sign yet of stress in the financial system following the sharp increase in interest rates in the past 12 months. That said, the closure should be kept in perspective and, from what we can tell at present, calls for this being another “Lehman moment” are based far more on hyperbole than facts…

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