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DE30 loses at start of week
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Credit Suisse puts pressure on financial institutions
This week's first trading session on the Old Continent brings declines in most stock market benchmarks. Investors' attention is now focused on Credit Suisse Bank (CSGN.CH), which is under pressure from speculation over fears of a possible bank collapse. The economic calendar today is filled with PMI readings from Europe and the US. Germany's reading showed another surprise to the downside, with industrial company sentiment falling to 47.8 against forecasts of 48.3.
Source: xStation 5
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The swap market is currently pricing in a near 82% chance of a 75bp rate hike at the ECB's October meeting. Source: Bloomberg
DE30 index chart, D1 interval. The benchmark German blue chips are trading down today and have broken below the 12,000-point barrier. Source: xStation 5
Monday's German market session brings lower valuations for most economic sectors. Source: Bloomberg
News:
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The attention of investors in Europe today is focused on Credit Suisse (CSGN.CH), which is losing more than 7%, despite assurances from the CEO that the bank maintains a strong capital and liquidity base at all times. Recall that last week CDS (credit default swaps), or derivatives that protect against the possible collapse of the underlying entity, reached their highest levels since 2009. A new strategic plan is scheduled to be announced on October 27. The Swiss bank's problems are putting pressure on all financial institutions, including Deutsche Bank (DBK.DE), which is currently losing nearly 4.5%.
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RWE (RWE.DE) announced over the weekend the acquisition of US-based Con Edison Clean Energy Businesses. The leading operator and developer of solar and storage systems in the US market is valued at $6.8 billion in the deal. RWE's shares are currently gaining 2%.
Bank recommendations:
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Lufthansa (LHA.DE) downgraded to "reduce" by HSBC. Target price at €4.75.
The largest percentage changes of companies included in the DAX index. Source: Bloomberg
The most active stocks in the DAX index (DE30). Source: Bloomberg
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