Banks pressured after U.S. fund wilts – MarketWatch
Shares of Europe’s largest banks dropped on Monday after extending credit to a major client that couldn’t meet its obligations.
A margin call triggered on Friday of U.S. investor Archegos Capital Management continued to ripple through markets. Nomura 8604, -16.33% shares skidded 16% in Tokyo after it said it had a claim of $2 billion against a U.S. client, while Credit Suisse CSGN, -13.99% fell 13% in Zurich after it said a U.S. hedge fund defaulted on margin calls.
Deutsche Bank DBK, -4.68%, which according to The Wall Street Journal also unwound Archegos trades, fell 5%, and UBS UBSG, -4.03% shares fell 5%.
“Last week’s back and forth battle between the recovery optimists and the lockdown fretters ended with the bulls regaining the upper hand, and many global equity markets begin this Easter-shortened week within striking distance of their recent, or in some cases all-time, highs,” said Ian Williams, strategist at U.K. broker Peel Hunt.
The Ever Given container ship was refloated, an important step in unclogging the Suez Canal, which now has a backlog of 450 ships.