European Shares Fall As Banks Resume Selloff

(RTTNews) - European stocks fell in cautious trade on Wednesday as investors kept a close eye on the developments surrounding the SVB crisis.

Traders also geared up for British Chancellor Jeremy Hunt's "Spring Budget" today in which he's expected to announce key pension and child-care reforms.

Hunt is set to outline the tax and spending plans of the government for the year ahead. The announcement is due at 8.30 am ET.

In economic releases, Germany's wholesale price index rose 8.9 percent year-on-year in February, slower than the 10.6 percent rise in January, Destatis reported. This was the slowest rate since April 2021, when prices had grown 7.2 percent.

Separate data showed France's annual inflation was revised upwards to 7.3 percent in February from 7.0 percent in January as a result of higher food prices.

The pan European STOXX 600 fell about 1 percent to 445.28 after rallying 1.5 percent on Tuesday.

The German DAX dropped 0.7 percent, while France's CAC 40 and the U.K.'s FTSE 100 both were down around 1.2 percent.

Banks traded lower, with Commerzbank, Deutsche Bank, BNP Paribas, Credit Agricole and HSBC falling 2-4 percent after Moody's Investors downgraded the outlook on the U.S. banking system to 'negative' from 'stable'.

French logistics company Bollore soared 8.2 percent after posting a rise in fourth-quarter revenue and announcing plans to launch a cash tender offer to acquire a maximum of just over 288.6 million shares, representing 9.78 percent of its share capital.

BMW shares were little changed, giving up earlier gains. The German automaker said it expects higher margins and deliveries in 2023.

Energy giant E.ON gained nearly 2 percent after reporting a rise in FY22 adjusted profit and sales.

Specialty chemicals group Lanxess slumped 4 percent after its slipped to a fourth-quarter loss of 21 million euros versus a profit of 29 million euros last year.

British insurer Prudential tumbled 6.2 percent after its annual premium equivalent and new business profit missing consensus marginally.

Burberry dropped 1.3 percent after the luxury house hired Kate Ferry from McLaren Group as its new chief financial officer.

Commodity trading and mining firm Ferrexpo lost 3.6 percent after reporting a decline in FY22 profit.

Online trading platform IG Group plunged 7 percent after its third-quarter net trading revenue fell on lower market volatility.

Zara-owner Inditex fell nearly 3 percent despite reporting record profits for 2022.