Banks under pressure after collapse of US funds



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Shares of Europe’s largest banks fell on Monday after granting credit to a major customer who could not meet his obligations.

A margin call triggered on Friday by US investor Archegos Capital Management continued to spread in the markets. Nomura 8604,
-16.33%
shares slipped 16% in Tokyo after it said it had a $ 2 billion claim against a US client, while Credit Suisse CSGN,
-13.83%
fell 10% in Zurich after saying a US hedge fund defaulted on margin calls. Deutsche Bank DBK,
-5.48%,
which, according to the Wall Street Journal, also settled Archegos deals, fell 5%, and UBS UBSG,
-4.00%
stocks fell 3%.

The holdings of Archegos that were sold to meet margin calls included positions in US media companies ViacomCBS VIAC,
-27.31%
and Discovery Holdings C4XD,
,
and Chinese Internet companies Baidu BIDU,
+ 1.97%,
Tencent Music TME,
-1.28%
and Vipshop VIPS,
-2.38%.

More broadly, the Stoxx Europe 600 SXXP,
-0.05%
was stable, while US equity futures ES00,
-0.68%
decreases.

“Last week’s battle between recovery optimists and lockdown fretters ended with the rally by the top bulls, and many global stock markets start this shortened Easter week at a striking distance from their recent , or in some cases all time highs, ”said Ian Williams, strategist at UK brokerage Peel Hunt.

Ever Given has been refloated, a milestone in the deforestation of the Suez Canal which now has a backlog of 450 ships.

ADS Adidas,
+ 2.14%
stocks rose 3%, but still traded around 12% below their March highs. Huawei deleted Adidas and Nike NKE,
+ 3.38%
of its app store, the latest initiative by a Chinese company to penalize Western clothing brands that have boycotted cotton from Xinjiang.

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