London Daily

Focus on the big picture.
Friday, Sep 19, 2025

Financial markets calm but warning of problems to come from IMF

Financial markets calm but warning of problems to come from IMF

The FTSE 100 rebounded as did shares in the largest UK commercial banks after the Deutsche Bank sell off on Friday.
After a turbulent Friday and the rumbling of the worst financial crisis since 2008, the UK and European stock markets have largely calmed.

Germany's largest bank, Deutsche Bank, became the focus in the latest wave of selling across banking and wider financial stocks in the wake of the forced takeover of Credit Suisse.

Its shares had fallen more than 14% at one point during a bumpy day of trading across Europe.

On Monday they bounced back to finish 6.2% up, but failed to reach the level of €9.32 (£7.59) - a share seen before the drop on Thursday evening.

Similarly, the FTSE 100 index of the most valuable companies listed on the Financial Times Stock Exchange closed 0.9% up, but had yet to recover from the hit it took on Friday.

Following the news that the embattled Silicon Valley Bank had been bought by First Citizen Bank, its shares surged above 50%.

Meanwhile NatWest and Lloyds ended the day in positive territory, with Barclays also up 2.3%.

The gains come just a day after the head of the International Monetary Fund (IMF) warned there are risks to financial stability stemming from the turmoil in the banking sector.

"At a time of higher debt levels, the rapid transition from a prolonged period of low interest rates to much higher rates, necessary to fight inflation, inevitably generates stresses and vulnerabilities, as evidenced by recent developments in the banking sector in some advanced economies," said Kristalina Georgieva, managing director of the IMF.

Central banks globally have raised interest rates in an effort to reduce inflation, both boosting banks' profitability and posing challenges as some reliable banking securities lose value.

At the opening of US markets, the three main stock market gauges all jumped up from Friday. The S&P 500 and Dow Jones later both ended the day up 0.2% and 0.6% respectively, although the Nasdaq 100 finished 0.7% down.

Markets have been unsettled since SVB's collapse, which was followed by the failure of another regional lender Signature Bank.

The troubled Credit Suisse was rescued just over a week later.

"Markets have opened calmly this morning, and it looks like Friday's panic over Deutsche Bank was a bit misplaced," said the chief market analyst at IG Group, the online trading provider.

"But the steady drain of deposits from banks means a slow motion problem is in the making, and could result in a contraction in lending that brings on a recession," Chris Beauchamp said. "This is the bigger risk than the hunt last week for the next domino to fall in the global banking system."
Newsletter

Related Articles

0:00
0:00
Close
Massive Strikes in France Pressure Macron and New PM on Austerity Proposals
Trump Seeks Supreme Court Permission to Remove Fed Governor Lisa Cook
Hillary Clinton’s Reckless Rhetoric Fuels Division After Charlie Kirk’s Assassination
NASDAQ Rises to Record as Intel Soars More Than 20%, Nvidia Gains 3%
Nvidia’s $5 Billion Bet on Intel Reshapes AI Hardware Landscape
Trump and Starmer Clash Over UK Recognition of Palestinian State Amid State Visit
Trump’s Quip on Biden and Google Lawsuit Revives Debate Over Antitrust Legacy
Macron and his wife to provide 'scientific photographic evidence' that she is a real woman
US Tech Giants Pledge Billions to UK AI Infrastructure Following Starmer's Call
Saudi Arabia cracks down on music ‘lounges’ after conservative backlash
DeepMind and OpenAI Achieve Gold at ‘Coding Olympics’ in AI Milestone
SEC Allows Public Companies to Block Investors from Class-Action Lawsuits
Saudi Arabia Signs ‘Strategic Mutual Defence’ Pact with Pakistan, Marking First Arab State to Gain Indirect Access to Nuclear Strike Capabilities in the Region
Federal Reserve Cuts Rates by Quarter Point and Signals More to Come
Effective and Impressive Generation Z Protest: Images from the Riots in Nepal
European manufacturers against ban on polluting cars: "The industry may collapse"
Sam Altman sells the 'Wedding Estate' in Hawaii for 49 million dollars
Trump: Cancel quarterly company reports and settle for reporting once every six months
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
US Launches New Pilot Program to Accelerate eVTOL Air Taxi Deployment
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
Hong Kong Industry Group Calls for HK$20 Billion Support Fund to Ease Property Market Stress
Joe Biden’s Post-Presidency Speaking Fees Face Weak Demand amid Corporate Reluctance
Charlie Kirk's murder will break the left's hateful cancel tactics
Kash Patel erupts at ‘buffoon’ Sen. Adam Schiff over Russiagate: ‘You are the biggest fraud’
Homeland Security says Emmy speech ‘fanning the flames of hatred’ after Einbinder’s ‘F— ICE’ remark
Charlie Kirk’s Alleged Assassin Tyler Robinson Faces Death Penalty as Charges Formally Announced
Actor, director, environmentalist Robert Redford dies at 89
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
JD Vance Says There Is “No Unity” with Those Who Celebrate Charlie Kirk’s Killing, and he is right!
Trump sues the 'New York Times' for an astronomical sum of 15 billion dollars
Florida Hospital Welcomes Its Largest-Ever Baby: Annan, Nearly Fourteen Pounds at Birth
U.S. and Britain Poised to Finalize Over $10 Billion in High-Tech, Nuclear and Defense Deals During Trump State Visit
China Finds Nvidia Violated Antitrust Laws in Mellanox Deal, Deepens Trade Tensions with US
US Air Force Begins Modifications on Qatar-Donated Jet Amid Plans to Use It as Air Force One
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
Elon Musk Retakes Lead as World’s Richest After Brief Ellison Surge
U.S. and China Agree on Framework to Shift TikTok to American Ownership
London Daily Podcast: London Massive Pro Democracy Rally, Musk Support, UK Economic Data and Premier League Results Mark Eventful Weekend
This Week in AI: Meta’s Superintelligence Push, xAI’s Ten Billion-Dollar Raise, Genesis AI’s Robotics Ambitions, Microsoft Restructuring, Amazon’s Million-Robot Milestone, and Google’s AlphaGenome Update
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Musk calls for new UK government at huge pro-democracy rally in London, but Britons have been brainwashed to obey instead of fighting for their human rights
Elon Musk responds to post calling for the murder of Erika Kirk, widow of Charlie Kirk: 'Either we fight back or they will kill us'
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
USA: Office Depot Employees Refused to Print Poster in Memory of Charlie Kirk – and Were Fired
Proposed U.S. Bill Would Allow Civil Suits Against Judges Who Release Repeat Violent Offenders
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
×