European markets spooked by US bank shares sell-off

FTSE 100 down almost 2% as troubles at tech-focused lender Silicon Valley Bank cause ripples

An overnight sell-off of US banking stocks, sparked by troubles at the tech-focused lender Silicon Valley Bank (SVB), has seeped into European markets and sent the FTSE 100 down almost 2% on Friday.

Investors were spooked by news that California-based SVB, which primarily lends to tech startups, had launched an emergency share sale to shore up cash after revealing it had lost $1.8bn when it sold a portfolio of bonds in response to a decline in customer deposits.