SVB Shockwaves Rattle Global Banks In Grip Of Contagion Fears | Trevor Hunnicutt and Tom Westbrook

Contagion fears hammer global bank stocks

March 14 (Reuters) -- Silicon Valley Bank's collapse pressured global bank stocks further on Tuesday as investors fretted over the financial health of some lenders, in spite of assurances from U.S. President Joe Biden and other policymakers.

An indicator of credit risk in the euro zone banking system leapt to its highest since mid-July, as worries about contagion risks from the collapse of two U.S. banks compounded investor concerns about the impact on lenders of rising interest rates.

The VIX (.VIX) volatility index, Wall Street's "fear gauge", neared six-month highs overnight, although futures pointed to a modestly higher Wall St open on Tuesday, with U.S. regional banks bouncing in pre-market trading after recent brutal losses.

Banking giants Citi (C.N), Wells Fargo (WFC.N) and JP Morgan (JPM.N) were also 1%-3% higher in the pre-market.

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