It looks as if the damage caused by the imbalance of the Archegos hedge fund will remain limited to the institutions that were direct counterparties, said analyst Jochen Stanzl from the trading house CMC Markets. There are no systemic risks, even if the incident has now called the US Securities and Exchange Commission into action, explained Stanzl’s colleague Michael McCarthy.
In the Stoxx 600 industry overview, the banks were ahead with plus two percent on Tuesday, also benefiting from the further rise in yields on the bond market. The yield on ten-year US government bonds climbed to 1.75 percent on Tuesday, the highest level since January 2020. Banks are benefiting from rising interest rates, for example through higher income in the lending business.
In the leading euro zone index EURO STOXX 50, BNP Paribas and Santander, which had been among the weakest values the day before, were now well ahead with surcharges of 2.07 percent to 51.72 euros on EURONEXT and 1.73 percent to 2, respectively. 91 euros in Madrid. In Switzerland, Credit Suisse (CS) was also initially quoted higher, but then slipped into red territory. Credit Suisse is hit particularly hard by Archegos’ default, with the paper losing almost 14 percent the day before. Deutsche Bank shares have also recovered after the setback the previous day, up 1.22 percent at 10.27 euros.
/ ajx / jha
PARIS / LONDON (dpa-AFX)
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