(Paris) Investor fears after the drop in deposits in banking establishments again affected prices in the sector on Tuesday, which weighed on all stock market indices, struggling with many company results.
Wall Street opened slightly lower: around 9:50 a.m. EST, the Dow Jones was down 0.19%, the S
Among US ratings, First Republic bank fell 30% after its results showed a meltdown in its deposits between the end of 2022 and the end of March. It had been one of the banks most under pressure in March after the bankruptcy of the SVB establishment in the United States, or the takeover of Credit Suisse.
In Europe, the trend is also gloomy: around 9:50 am (Eastern time), Paris yielded 0.75%, London 0.39%, Frankfurt 0.11% and Milan 1.11%.
The banking sector is particularly suffering: the banking segment of the broader European index EuroStoxx600 fell by 2.2%.
Investors are struggling to digest weaker-than-expected results from Swiss bank UBS, despite “strong capital inflows” in the first quarter. The title, however, went up the slope compared to the start of the session (-0.14%).
The results, although better than expected, from Banco Santander (-5.36% in Madrid) were not well received either. The Spanish bank suffered a 6% drop in deposits in Spain in the first quarter compared to the previous period, a trend that has since reversed.
In Paris, BNP Paribas (-2.22%) and Société Générale (-3.38%) experienced the worst declines in the CAC 40 index. In Frankfurt, Deutsche Bank lost 2.55% and Commerzbank 2.01%. In Madrid, Banco Sabadell dropped 4.07%.
“Investors are cautious ahead of earnings from tech giants and some key macro indicators due later this week, with bond yields also trending lower, a sign of mild risk aversion sentiment setting in” , comments Neil Wilson, analyst of Finalto.
On Tuesday, after Wall Street closes, Google’s parent company Alphabet will be the first NASDAQ behemoth to report quarterly results before Meta and Amazon follow in the coming days.
Corporate results and announcements follow one another for investors, beyond the banking and technology sectors: in the United States, those of General Electric (-0.1%), Halliburton (-2.64%), General Motors (-1.75%) and McDonald’s (-0.06%) are down while PepsiCo (1.83%) which raised its forecasts, seduced.
In Europe, Associated British Foods (ABF), the parent company of the inexpensive clothing chain Primark, lost 3.29% in London, Randstad dropped 5.18% in Amsterdam but Novartis took 4.28%.
The world’s number one audio platform Spotify reached a new high of 515 million active users at the end of the first quarter, up 22% year on year, well beyond expectations, the Swedish group announced on Tuesday. The stock soared more than 7% on Wall Street, where it is listed.
Oil prices were down around 9:40 a.m. EST. A barrel of Brent North Sea oil for June delivery was worth $81.73 (-1.21%). Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, traded at 77.84 dollars (-1.17%).
On the foreign exchange market, the euro lost 0.43% against the dollar at 1.0999 dollars for one euro.
In the bond market, bond yields fell for European states and the United States. That of the German 10-year debt fell to 2.42%, against 2.51% at the close of the previous day.
Bitcoin was down 0.28% at $27,380.