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
Most Viewed Companies
Ticker Price Volume
QNBK 168 343,508
BKMB 0.47 499,506
ALMARAI 68.48 63,678
SABIC 92.86 4,825,956
PETRORABIGH 11.75 8,809,111
RIBL 10.71 540,366
GFH 0.54 2,950
Recent News

Selling in bank stocks pulls down share index
Local selling in banking stocks dragged down the MSM30 Index, which ended the session at 5,720.77 points, down by 0.29 per cent. The MSM Sharia Index declined by 0.08 per cent to close at 857.64 poi

Stocks hover near 3-month highs; pound in spotlight
Asian stock markets stabilised near three-month highs on Wednesday, helped by Hong Kong and Chinese shares, as investors judged US President-elect Donald Trump’s concerns over a stronger dollar to be

Saudi National Commercial Bank Q4 profit up 7.5%
Saudi Arabia’s National Commercial Bank (NCB) reported a 7.5% rise in fourth-quarter net profit yesterday as the kingdom’s largest lender was boosted by higher income from commission and investments.

Al Khaliji earns QR427mn profit
Al Khalij Commercial Bank (Al Khaliji) has posted a net profit of QR427mn in 2016, it was announced yesterday.

The bank’s net operating income for 2016 reached QR1.2bn and was 1% higher tha

QIB profit grows by 10.3% to QR2.15bn
QIB has recorded a net profit of QR2.15bn for the fiscal year 2016, up 10.3 percent compared to QR1.95bn for the year 2015. The bank’s basic earnings per share reached QR8.55 compared to QR 8.06 a ye

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?