(News Bulletin 247) – The New York Stock Exchange started in the red on Friday in the wake of European markets, the crisis of confidence surrounding the banking sector continuing to worry investors and fuel risk aversion.
At the end of the morning, the Dow Jones dropped more than 0.6% to 31,909.3 points, while the Nasdaq Composite lost 0.8% to 11,690.8 points.
Investors who were betting on an easing of fears about the health of the global financial system were taken aback by the unexpected rout of Deutsche Bank’s Frankfurt shares.
With a decline of more than 8%, the action of the first German banking group suffered massive releases in a volume of 76 million coins, the equivalent of 11 average trading sessions.
At the same time, the cost of protecting against the risk of default by Deutsche Bank rose sharply on Friday, following the price of CDS (‘credit default swaps’) which now includes a risk of bankruptcy of 33%.
The resumption of the downward movement in Europe has annihilated any hint of a rebound on Wall Street, where financial stocks are the most battered with a decline of 1.4%.
On the Dow, JPMorgan, American Express and Goldman Sachs lost between 2.1% and 2.7%, but it is the smallest institutions that are the most penalized. Raymond James thus fell by 3.6% and State Street by 3.8%.
Highly exposed to Europe, Morgan Stanley won 3.8%.
Another reason for caution, the economic indicators published in the morning do not really go in the direction of an easing of the monetary policy of the Fed.
The US private sector saw its growth significantly accelerate in March, according to S&P Global, whose composite PMI index stood at 53.3 in flash estimate, a 10-month high, after climbing to 50.1 the previous month.
The only downside is that durable goods orders fell 1% in February after falling 5% in January (revised from an initial estimate of -4.5%).
Government bonds are largely benefiting from the flight-to-safety movement, with the yield on 10-year Treasuries falling back towards 3.35%.
This decline does not prevent the dollar from recovering 0.8% to 1.0740 against the euro, the green ball serving as a refuge in the event of stress, while gold returns to the symbolic cap of 2,000 dollars per ounce. , also taking advantage of its safe haven status.
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