PARIS (Reuters) – The New York Stock Exchange opened lower on Friday with a further fall in banking stocks amid questions about Deutsche Bank that reignited fears of a domino effect on the entire financial sector.
In early trading, the Dow Jones index lost 164.16 points, or 0.51%, to 31,941.09 points and the broader Standard & Poor’s 500 fell 0.52% to 3,928.16 points.
The Nasdaq Composite lost 0.53%, or 62.986 points, to 11,724.412.
After the closures of the American regional banks SVB and Signature Bank, as well as the emergency rescue plan of Credit Suisse, acquired by UBS, the markets are this time shaken by Deutsche Bank which falls by 9.45% after a sharp increase in the cost insurance against a default risk of the first German bank.
In the wake of Deutsche Bank, the big American banks JPMorgan Chase, Wells Fargo and Bank Of America fell from 0.723% to 1.52%, while the regional banks First Republic Bank, Pacwest Bancorp, Western Alliance Bancorp and Truist Financial gave up 0.96% to 4.58%.
The index of banking stocks on the S&P-500 fell by 1.18% and that of finance by 1.11%.
The banking stress is also reflected in the bond market where the yield on two-year Treasury bills fell by nearly 20 basis points, to 3.62%, the lowest since September.
In the rest of the values, Block fell further, by 2.95%, after a plunge of 14.8% on Thursday, following accusations by the investment fund Hindenburg Research that the number of users of the payment platform is artificially inflated.
Activision Blizzard climbed 6.31%, the British regulatory authority having estimated that the acquisition of the publisher of Call of Duty by Microsoft (-0.23%) should not harm competition in the console segment of video game.
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(Written by Claude Chendjou, edited by Kate Entringer)
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