FTSE 100 hit by worst day since Covid as Credit Suisse raises fears of fresh banking crisis

‘If the bank fails, this could have major implications for other European banks’

Credit Suisse, whose London offices are at Canary Wharf, has been in trouble for many months (PA)

Fears the global economy might be hit by a fresh banking crisis wiped billions of pounds off the value of top firms on Wednesday during growing uncertainty over the future of troubled Credit Suisse.

Jitters spread through global markets as shares in the struggling Swiss lender crashed to a record low, dragging London’s FTSE 100 down 3.8 per cent. It closed at 7,344 points, more than wiping out the gains that the index has made since the beginning of the year. It was a bigger one-day decline than last year’s mini-Budget and the day that Russia launched the full-scale invasion of Ukraine.

The US Treasury said it is monitoring the Credit Suisse situation “and has been in touch with global counterparts” after the firm’s shares were suspended.