Regional Bank Fears Morph into Global Crisis, Gold Hits Record

What started as a regional bank fear in the US morphed into a global market crisis, with stocks tumbling from Tokyo to London and investors fleeing to the safety of gold. The precious metal hit a new record high of $4,378 an ounce.
The crisis began when Zions Bancorporation and Western Alliance, two US lenders, revealed significant bad loans. This news, while isolated, was enough to trigger a sell-off given the market’s anxiety about high interest rates and credit quality.
The reaction was swift. Asian markets, including the Nikkei and Hang Seng, fell over 1.5%. European markets followed, with the FTSE 100 and Dax dropping sharply. Bank stocks were the worst performers, with the European sector losing €37.4 billion.
The episode drew parallels to the SVB collapse, with analysts warning of a potential “domino effect.” The VIX “fear index” surged, confirming the deep anxiety that has gripped global investors.