---
title: "GLOBAL MARKETS-Bank stocks tumble on US lender jitters, gold hits fresh peak"
description: "Global bank stocks fell sharply due to concerns over U.S. regional lenders, with European banks down 2.7% and dragging the wider stock index lower. Gold reached a record high of $4,378.69 per ounce, r"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/261576949.md"
published_at: "2025-10-17T08:34:51.000Z"
---

# GLOBAL MARKETS-Bank stocks tumble on US lender jitters, gold hits fresh peak

> Global bank stocks fell sharply due to concerns over U.S. regional lenders, with European banks down 2.7% and dragging the wider stock index lower. Gold reached a record high of $4,378.69 per ounce, reflecting a flight to safe-haven assets. U.S. Treasuries also rose as investors anticipated further rate cuts from the Federal Reserve. Meanwhile, trade tensions between the U.S. and China added to market unease, contributing to a decline in the U.S. dollar and a drop in oil prices ahead of a summit between Trump and Putin.

European bank stocks decline after falls in Asian financials

Gold claims new record, close to biggest weekly rise since 2008

Oil hits new five-month lows as Trump, Putin summit looms

Treasuries up for third week as investors bet on more rate cuts

(Updates after European markets open)

By Iain Withers and Stella Qiu

LONDON/SYDNEY, Oct 17 (Reuters) - Tumbling bank shares pulled global stocks lower on Friday, while gold hit a fresh peak, as signs of credit stress at U.S. regional lenders unnerved investors and drove them into safe-haven assets.

European banks fell 2.7% (.SX7P) in early trade - dragging the wider stock index down 1.8% (.STOXX) - with the likes of Deutsche Bank (DBKGn.DE) and Barclays (BARC.L) down more than 5%, following losses across Asian financial stocks.

S&P 500 futures (ESc1) and Nasdaq futures (NQc1) were down more than 1% ahead of more earnings from U.S. regional banks later in the day.

### DOLLAR UNDER PRESSURE, GOLD AND TREASURIES CLIMB

Overnight, U.S. regional lender Zions (ZION.O) sank 13% after disclosing it would take a $50 million loss in the third quarter on two loans from its California division. Western Alliance’s (WAL.N) stock slumped 11% after it initiated a lawsuit alleging fraud by Cantor Group V, LLC. Cantor’s attorneys denied the allegations.

The developments pummelled U.S. banking stocks and weighed on the U.S. dollar to the benefit of the yen and Swiss franc.

“While the recent issues of the two lenders seems well contained, where there is smoke there is often fire and the remedy of the 2023 crisis has created a tinderbox for another banking flare-up,” said IG analyst Tony Sycamore, referring to a series of bank failures that year which prompted the U.S. Federal Reserve to take steps to stabilise the financial system.

Safe-haven Treasuries rallied further, with two-year yields (US2YT=RR) down to a fresh three-year low of 3.376% as investors priced in at least two more quarter-point rate cuts from the Fed this year.

The flight to safety saw gold (XAU=) hit a record of $4,378.69 per ounce. Bullion is set for a weekly gain of 7.8%, and earlier in the session had temporarily been on track for its biggest gain since September 2008 when the collapse of Lehman Brothers fuelled the global financial crisis.

“It wouldn’t surprise me, frankly, if gold hits $5,000 before it actually stops for air …. Equally, it could fall 20% in the next month. So we’re more holders than buyers at current levels,” said Eren Osman, managing director of wealth management at Arbuthnot Latham.

Sentiment in equities has also taken a hit due to rising trade tensions between China and the United States. China on Thursday accused the U.S. of stoking panic over its rare earth controls, rejecting a White House call to roll back the curbs.

MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) dropped 1.4%, taking the week into negative territory.

The credit worries and rate cut bets have weighed on the U.S. dollar, which is off 0.6% this week. (=USD) (FRX/)

The yen (JPY=) and the Swiss franc (CHF=) have gained most, with both up about 1% this week.

Bank of Japan Governor Kazuo Ueda said that the central bank would scrutinise various data in deciding whether or not to raise interest rates this month.

Oil prices extended losses, after falling 1% overnight as U.S. President Donald Trump said he and Russian President Vladimir Putin had agreed to meet in Hungary soon to discuss ending the war in Ukraine.

U.S. crude (CLc1) fell 0.5% to $57.18 a barrel, while Brent (LCOc1) was also off 0.5% to $60.78.

Asia stock markets here Asia-Pacific valuations here

(Editing by Kim Coghill and Mark Potter)

### Related Stocks

- [WAL.US - Western Alliance Bancorp](https://longbridge.com/en/quote/WAL.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.