CONTAGION: European banks are getting crushed by Deutsche Bank
Warner Bros
Deutsche shares have collapsed this week, falling to several record lows, as investors start to fear that the bank could collapse under the weight of a proposed $14 billion fine from the US Department of Justice.
Bloomberg News reported last night that about 10 hedge funds have moved to limit exposure to the bank and have withdrawn funds, which caused Deutsche's shares to plunge in US trade. That fall has continued on Friday, with the bank's shares passing below €10 each for the first time in history in trade in Frankfurt.
In turn, stocks across the board, but particularly in the financial services sector, are crashing lower on Friday. Around 8:30 a.m. BST (3:30 a.m. ET) the Stoxx index of European banking shares is off by almost 4% as contagion from DB spreads to banks across the continent. Here's how that looks:
Investing.com
On a bank-by-bank basis, Deutsche is right at the bottom of the pile, down more than 7.7%, while Germany's second largest lender, Commerzbank is not far behind off 7.5%.
Here's the scoreboard from some of the continent's other top banks:
- Unicredit - down 4.72%
- Societe Generale - down 4.14%
- Credit Agricole - down 4.17%
- Santander - down 3.93%
- Barclays - down 4.11%
- Royal Bank of Scotland - down 3.53%
However, it is not only the banking sector witnessing massive losses on the day, with all of the continent's major share indexes significantly lower on the morning. Peripheral indexes including the FTSE MIB in Italy, and IBEX 35 in Spain are the biggest fallers so far, with the IBEX more than 2.5% down. Here's the scoreboard:
Investing.com
- Bridgerton season 3 will be out on Netflix India today and here’s everything you need to know about the popular rom-com!
- With over one lakh fresh jobs, hotel industry could revitalise Indian job market in the next 18 months: Report
- Gold Price Update (May 16, 2024): Rates in Mumbai, Delhi, Kolkata, Bengaluru, Chennai, and other Indian cities
- France declares state of emergency in New Caledonia as violent protests rage
- KKR secure top spot for first time; RCB, CSK, SRH still in hunt for two remaining IPL playoff spots
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market