European stocks were sharply lower on Wednesday, with bank shares in deep negative territory amid the global fallout from Silicon Valley Bank and more bad news for Credit Suisse.

The pan-European Stoxx 600 index fell 2.5%, with all sectors trading in the red bar healthcare, which was unchanged.

Bank stocks fell 6.9%, followed by the energy sector, which fell 5%.

Credit Suisse fell to the bottom of the blue-chip index, down 28% at 1:05 p.m. London time, after the bank’s biggest lender, Saudi National Bank, said it would not be able to offer it more financial assistance.

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Credit Suisse share price.

The Credit Suisse case prompted a broader bank selloff to resume after the sector staged a modest recovery Tuesday. BNP Paribas decreased by 11.2%, Societe Generale decreased by 12.6%, Commerzbank was down 10.1% and Deutsche Bank was down 8.5%.

Several bank stocks, including Credit Suisse, were temporarily halted from trading during the morning due to the sharp declines. Deutsche Bank, Societe Generale and UBS declined to comment.

It comes in despite brisk trade Asia-Pacific region overnight and on Wall Street Tuesday, where U.S. bank stocks rallied on optimism that the contagion risk from the collapse of Silicon Valley Bank was limited. US stock futures was lower at the beginning of Wednesday.

At the same time, UK Chancellor of the Exchequer Jeremy Hunt revealed his “Spring Budget”, which includes extensions of the reduction in fuel tax and of energy support measures. It comes as teachers, civil servants, railway workers and junior doctors strike over pay and working conditions.

Also hunt said the UK economy “proved the doubters wrong” as gold yields, mortgage rates and inflation fall, and that it would avoid a technical recession.