Stocks Slump Amid Deutsche Bank Fears


01/10/2016 11:04 AST

U.S. equities finished sharply lower on Thursday amid reports hedge funds are pulling collateral out of troubled German financial titan Deutsche Bank AG (USA) (NYSE:DB) amid ongoing concerns about its balance sheet health as it struggles with a tepid European economy, Brexit costs and fresh regulatory fines here in the United States. Spiking the punch have been indications the German government is reluctant to get involved with state aid to the bank.

DB shares lost 6.7% as headlines filled up with stories eerily reminiscent of the 2008-2009 financial crisis — full of questions about counterparty risk, contagion, increased credit default swap prices and tightening interbank liquidity. As a result, the bank’s market cap dropped below beleaguered new-tech disappointment Twitter Inc (NYSE:TWTR). Which is sort of funny.

In the end, the Dow Jones Industrial Average lost 1.1%, the S&P 500 Index lost 0.9%, the Nasdaq Composite lost 0.9% and the Russell 2000 lost 1.4%. Treasury bonds were stronger on safe haven flows, the dollar was mixed, gold gained 0.2% to end its recent selloff and oil extended its OPEC-driven rally from Wednesday adding another 1.7% (despite early pushback from Iraqi oil officials on its production level).

Volatility surged higher as investors sought safe havens. That pushed the Velocity Shares 2x VIX (NASDAQ:TVIX) recommended to Edge subscribers earlier this week to a gain of 12.3%.

Investor Place
Global News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive

JAN | FEB | MAR | APR | MAY
Most Viewed Companies
Ticker Price Volume
BKIZ 0.08 603,308
QNBK 142.5 107,519
DAMAC 2.9 10,745,709
WAHA 1.75 159,227
BKNZ 0.09 1,072,179
SABIC 98.4 2,362,937
MMG 0
Recent News

Honeywell, Aramco sign agreement for advanced digitisation in Oil&Gas
Honeywell and Saudi Aramco have signed a memorandum of understanding (MoU) for implementing the Industrial Internet of Things (IIoT) and advanced digitisation within Saudi Aramco’s operations.
<

Saudi Arabia Signs $50 Billion Worth Of Oil Deals With The U.S.
U.S. companies signed billions of dollars worth of deals with Saudi Arabia’s oil and gas industry during President Donald Trump’s visit to the Kingdom over the weekend, boosting bilateral business ti

Oil prices rise as market expects extended production cut
Oil prices rose on Wednesday, supported by confidence that an OPEC-led output cut aimed at tightening supply would be extended to all of 2017 and the first quarter of next year.

Brent futu

Leading security firm plans Oman operations
Le Beck, which has a presence in some of the Gulf Cooperation Council (GCC) countries, is planning to begin operation in the Sultanate in coming months, a top-level official said.

In an in

National Finance to raise OMR46m to fund ‘cash buyout’ of Oman Orix
National Finance Company plans to raise OMR45.8 million by way of a rights issue and a perpetual bond issue to raise fund for its ‘cash buyout’ of the Oman Orix Leasing Company.

The Board

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?