Business
UK stock market hit by nerves over US banks
Ben KingBusiness reporter
Getty ImagesThe UK’s stock market has fallen sharply after a warning from two US banks triggered a widespread sell-off in global shares.
Two US regional lenders, Western Alliance Bank and Zions Bank, said on Thursday that they had been hit by either bad or fraudulent loans, sparking fears of problems in the banking sector.
Some of the UK’s biggest banks, including Barclays and Standard Chartered saw their share prices fall more than 5%. The FTSE 100 index of leading shares had dropped about 1.5% at one point before regaining some ground.
Stock market indexes around the world, including Germany’s Dax and the Cac 40 in France, also fell.
On Thursday, Zions Bank said it would write off a $50m loss on two loans, while Western Alliance disclosed it had started a lawsuit alleging fraud.
“Pockets of the US banking sector including regional banks have given the market cause for concern,” said Russ Mould, investment director at AJ Bell.
“Investors have started to question why there have been a plethora of issues in a short space of time and whether this points to poor risk management and loose lending standards.”
“Investors have been spooked,” he added, saying that while there was no evidence of any issues with UK-listed banks, “investors often have a knee-jerk reaction when problems appear anywhere in the sector”.
Bank shares in Europe were also hit, with Germany’s Deutsche Bank down more than 5% and France’s Societe Generale dropping 4%.
Asian markets fell earlier on Friday. Japan’s Nikkei index closed down 1.4% and in Hong Kong the Hang Seng Index ended the day 2.5% lower.
Investors have been nervous following the failure of two high-profile US firms, car loan company Tricolor and car parts maker First Brands.
These failures have raised questions about the quality of deals in what is known as the private credit market – where companies arrange loans from non-bank lenders.
This week Jamie Dimon, the boss of the US’s largest bank JPMorgan Chase, warned that these two failures could be a sign of more to come.
“My antenna goes up when things like that happen,” he told analysts. “I probably shouldn’t say this, but when you see one cockroach, there are probably more. Everyone should be forewarned on this one.”
In addition, there have also been warnings that the surge in artificial intelligence investment has produced a bubble in the US stock market – including from Mr Dimon – leading to fears that shares are overvalued.
The market turbulence on Friday saw the price of gold reach a fresh record high of $4,380 per ounce, as investors looked for safe havens for their money.
Another closely watched measure of market nerves, the VIX volatility index sometimes called the “Fear Index”, hit its highest level since April.
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Sian Agro posted a consolidated net profit of Rs 52.21 crore in Q1 FY26 (June 2025 quarter), a dramatic jump from just Rs 9.79 lakh in the same quarter last year
Company posted Rs 52.21 crore net profit in Q1 FY26. (Representational Image)
The small-cap counter Sian Agro Industries and Infrastructure Limited has emerged as one of the most talked-about stocks on Dalal Street, posting an extraordinary rally that has stunned market observers. Once an under-the-radar scrip, it has now transformed into a multibagger phenomenon, multiplying investors’ wealth at an astonishing pace.
According to market data, the company’s share has delivered a 1360% return in just one year, while its gains so far in 2025 stand at over 513%. Even in the past month alone, the stock has surged nearly 125%. Despite a recent 5% dip on Friday, October 17, the stock was still trading at an impressive Rs 3,122.80 on the BSE.
The company is helmed by Nikhil Gadkari, son of Union Minister for Road Transport and Highways Nitin Gadkari. Promoters collectively hold 67.67% of the company’s shares.
In view of the meteoric rise in its stock price, the Bombay Stock Exchange (BSE) has placed Sian Agro Industries under the Long-Term Additional Surveillance Measure (ASM: Stage 4) category, a move aimed at cautioning investors and curbing speculative activity.
The company operates in the packaged food sector, dealing in edible oils, rice, and spices, apart from maintaining a presence in the ethanol business. Its financial performance in recent quarters has been nothing short of spectacular.
As per the firm’s latest earnings report, Sian Agro posted a consolidated net profit of Rs 52.21 crore in Q1 FY26 (June 2025 quarter), a dramatic jump from just Rs 9.79 lakh in the same quarter last year. Revenue from operations also skyrocketed to Rs 510.80 crore, up from a mere Rs 17.47 crore in the same period a year ago. The figures underline the company’s expanding footprint and surging market demand.
From Rs 1 Lakh to Rs 14.6 Lakh in 1 Year
A year ago, Sian Agro Industries was priced at Rs 213.85 per share. At today’s levels, that same investment has multiplied nearly 14.6 times, turning a modest Rs 1 lakh into Rs 14.6 lakh. Even short-term investors have benefited immensely. An investment of Rs 1 lakh just a month ago would now be worth around Rs 2.24 lakh, more than doubling in 30 days.
(Disclaimer: The information presented is based on the company’s market performance. Investments in the stock market are subject to market risks. Readers are advised to consult a certified financial advisor before making investment decisions. The publication will not be responsible for any financial losses.)
October 17, 2025, 17:55 IST
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The UK’s FTSE 100 has tumbled as a sell-off spreads across global markets, amid concerns about the stability of regional banks in the US.
Shares in big global banks like Barclays and Standard Chartered were down by more than 5% on Friday morning.
The FTSE 100 was falling by about 1.5%, while the FTSE 250 was down by more than 1.6%.
Other Europe indexes were falling, with Germany’s Dax down by more than 2% and France’s Cac 40 declining by around 0.8%.
US regional banking stocks had fallen sharply on Thursday after two lenders revealed issues with bad and fraudulent loans, triggering a sell-off across the wider market.
Zions Bancorp announced it was taking a 50 billion US dollar (£37 billion) charge on the discovery of two bad loans, while Western Alliance said it was handling a potentially fraudulent borrower.
Russ Mould, investment director for AJ Bell, said investors were “spooked” by the news and “possibly opting to have lower exposure in case a crisis is brewing” in the banking sector.
“There is no evidence of any issues with the London-listed core banking names, but investors often have a knee-jerk reaction when problems appear anywhere in the sector,” he explained.
“In addition to news related to US regional banks, also weighing on sentiment were signs of liquidity pressures in America.
“Banks tapped the Federal Reserve’s short-term lending facility for more than 15 billion US dollars (£11 billion) over the past two days, the largest amount borrowed over a two-day period since the Covid pandemic.”
Richard Hunter, head of markets at Interactive Investor, said: “Of themselves, the credit losses announced by two regional banks were limited and seem to be contained.
“While there are hopes that this could be an isolated incident, the episode brought back unwelcome memories of the Silicon Valley Bank collapse in 2023 and, with several regional banks yet to report, investors are on high alert.
“Indeed, despite there being no obvious read across to the large banks, the reports were enough to put the skids under the sector as a whole, with losses of around 3% more or less across the board.”
At the same time, gold prices shot up to a new all-time high as investors sought out the safe-haven asset amid the stock market turbulence.
Prices reached about 4,380 US dollars (£3,260) per ounce on Friday morning.
Gold prices reached an all-time high in both international and Pakistani markets on Friday. According to market data, the international gold price climbed by $14 per ounce, reaching $4,358 per ounce the highest level ever recorded.
In Pakistan, the price of 24-karat gold surged by Rs14,100 per tola within a single day, taking the new rate to a historic Rs459,900 per tola.
Similarly, the price of ten grams of gold rose by Rs12,089, now standing at Rs391,718.
Silver prices also moved upward, with the price of one tola increasing by Rs167 to reach Rs5,504.
Market analysts attribute the sharp increase to global economic uncertainty and growing investor preference for safe-haven assets like gold.
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