(New York) The New York Stock Exchange opened lower on Friday, again unwell by the earthquake which agitates the western banking sector, with Deutsche Bank this time in the line of sight, investors favoring the safest assets.
Around 9:40 a.m. EST, the Dow Jones fell 0.58%, the NASDAQ index returned 0.66%, and the broader S
Like the European markets, Wall Street had its eyes directed towards Deutsche Bank, which appears, in the eyes of the market, as the new weak link in the banking system, after the bankruptcy of three American establishments and the disaster takeover of Credit Suisse.
This latest development “fuels concerns about the health of the banking system,” said Quincy Krosby of LPL Financial.
The scapegoats of this banking crisis were targeted, primarily the regional establishment First Republic (-5.27%). The San Francisco bank lost almost 90% of its market capitalization in just over two weeks.
The renewed tension also affected the Californian PacWest (-2.49%), but also the big American banks like Goldman Sachs (-2.01%) or Morgan Stanley (-2.55%).
“We sell first and ask questions later,” said Quincy Krosby. “Investors don’t want to wake up on Sunday to find that Deutsche Bank’s situation has deteriorated, Credit Suisse style. »
The bond market once again acted as a refuge for investors, who rushed into US Treasuries, driving down their rates, which move in the opposite direction to their prices.
The yield on 10-year US government bonds fell to its lowest level in six months, at 3.27%. It stood at 3.30%, against 3.42% the previous day at the close.
The VIX index, which measures market volatility, jumped more than 6%.
However, most stocks traded within tight margins and the decline was contained.
On the stock market, Activision Blizzard soared (6.20%) after the publication of an opinion from the British Competition Authority (CMA), estimating, after examination, that the acquisition of the video game publisher by Microsoft (-0.47%) would not have a “substantial” effect on the UK console games market.
