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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 Friday of U.S. hedge fund Archegos Capital Management continued to ripple through markets. Nomura
8604,
shares skidded 16% in Tokyo after it said it had a claim of $2 billion against a U.S. client, while Credit Suisse
CSGN,
fell 10% in Zurich after it said a U.S. hedge fund defaulted on margin calls. Deutsche Bank
DBK,
which according to the Wall Street Journal also unwound Archegos trades, fell 5%, and UBS
UBSG,
shares fell 3%.
Archegos holdings that were sold to meet margin calls included positions in U.S. media companies ViacomCBS
VIAC,
and Discovery Holdings
C4XD,
and Chinese internet companies Baidu
BIDU,
Tencent Music
TME,
and Vipshop
VIPS,
More broadly, the Stoxx Europe 600
SXXP,
was steady, while U.S. stock futures
ES00,
declined.
“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 was refloated, an important step in unclogging the Suez Canal that now has a backlog of 450 ships.
Adidas
ADS,
shares rose 3%, but still traded about 12% below its highs of March. Huawei removed Adidas and Nike
NKE,
from its app store, the latest move by a Chinese company to penalize Western apparel makes that have boycotted Xinjiang cotton.
