(News Bulletin 247) – The New York Stock Exchange should open lower on Friday morning, the fear of seeing a banking crisis appear in Europe once again sowing trouble on the markets.

Half an hour before the opening, the futures contracts on the main indices yield between 0.4% and 0.8%, announcing a start to the session in the red.

Since the start of the week, US stock markets have been trying to get out of their recent zone of turbulence, but risk aversion is regaining the upper hand today with lingering concerns about the health of the global financial system.

The general climate remains dominated by the uncertainties surrounding the most fragile banking establishments, in a context of rising interest rates and slowing activity.

This time, it is the action Deutsche Bank which is in the eye of the storm in Frankfurt, wiping by far the largest drop in the DAX index with losses of more than 11%.

While the German group has undeniably made structural progress in recent years, it is still considered one of the weak links in European finance after years of insufficient capitalization.

The news raises the specter of a major banking crisis on the Old Continent, against a backdrop of growing investor distrust of the sector.

On Wall Street, US banks exposed to their European counterparts should be watched closely by investors, as financial stocks have plunged 13% over the past month.

Worries surrounding the banking sector have caused the Dow Jones to shed more than 2% in the past four weeks, bringing its year-to-date losses to more than 3%.

Government bonds are largely benefiting from the flight-to-safety movement, with the yield on 10-year Treasuries falling back towards 3.30%.

The markets look to be unstable anyway, as evidenced by the jump in the CBOE’s VIX volatility index, nicknamed the ‘fear index’, which rose 6% beyond 24 points.

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