The extraordinary price action on global markets is proof the collapse of Silicon Valley Bank is likely to reverberate for months to come, as investors find themselves caught between the need for central banks to continue their year-long battle against inflation, and growing worries that an overly leveraged financial system has become unstable.
The ASX 200 dropped sharply on Tuesday morning, down 1.7 per cent in early trade, after US and European markets opened for the first time since the collapse and rescue of SVB on the weekend.