European Shares Down Over 2% despite HSBC’s Acquisition of SVB UK

European markets were down more than 2% on Monday as investors worried about the fallout from the Silicon Valley Bank collapse.

At 16.58 hrs Bangkok time, the Stoxx 600 index in Europe was down 2.46%, with all sectors and major markets in the red zone. Losses were led by bank stocks, which fell 4.25%, followed by insurance and financial services.

The stock market decline comes amid news that HSBC has agreed to buy the British branch of the failing US tech startup-focused SVB for £1.

HSBC shares lost 3.5%, Commerzbank shares dropped about 12%, while Credit Suisse shares fell 9.4%.

Meanwhile in the US, stock futures headed downhill as regulators pledged to protect SVB depositors and open up new sources of funding for other financial institutions.

On Friday, officials stepped in and took control of Silicon Valley Bank following a day of massive withdrawals that caused a bank run. According to a joint announcement from the Treasury Department, the Federal Reserve, and the FDIC, all SVB depositors will once again have access to their funds beginning Monday.