The global financial markets were rocked by a renewed risk-off trade on Friday, as concerns over regional banking woes reignited following disclosures of bad loans tied to fraud at Western Alliance and Zion Bancorp. The US stock market felt the brunt of the selling pressure, with the KRE (Regional Banking ETF) plunging over 6% and the financial sector taking a near 3% hit. Equities across the board were also hit, with sliding prices throughout the US session.

In Asia, stocks were predominantly lower as the region followed suit to the losses on Wall Street. European equity futures indicate a lower cash market open today, with Euro Stoxx 50 futures down 0.9% after the cash market closed with gains of 0.8% on Thursday.

In other news, the White House has issued a statement regarding the Trump-Putin call, saying it was “good and productive.” The two leaders have agreed to convene a meeting of high-level staff next week, which may then be followed by another Trump-Putin meeting.

Looking ahead, investors will be eyeing key economic data releases such as the EZ HICP Final (Sep), Atlanta Fed GDP, Suspended Releases: US Building Permits/Housing Starts (Sep), Industrial Production (Sep), and earnings from Ally Financial, SLB, American Express, State Street & Volvo AB.

The renewed banking concerns have sent shockwaves through the financial markets, with investors growing increasingly cautious in light of recent collapses such as Tricolor and First Brands. The impact on global growth and inflation remains to be seen, but one thing is certain: risk appetite has taken a hit, and investors are bracing for more volatility ahead.