-
End of week puts pressure on Old Continent
-
Deutsche Bank in the shadow of the crisis
-
Investors seek refuge in the bond market
The last trading session on European markets this week brings a significant deterioration in investor sentiment in Europe. The main indices from the Old Continent recorded declines of nearly 1.5%, despite good PMI readings from Germany or France. However, the market is worried about recession and the banking crisis, which today is shifting towards Deutsche Bank. Shortly after the opening of the session on Wall Street, investors will learn the PMI index readings from the USA.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app-
Investors' attention is primarily focused today on Deutsche Bank (DBK.DE) shares, which are currently trading down nearly 13%. Its valuation is deepening its discount to book value and credit default swaps (CDS) have climbed to levels last seen in 2020. This shows that the speculative market is increasingly confident that the institution's problems will get worse.
Deutsche Bank's previously mentioned CDS (DBK.DE). Source: Bloomberg
-
Circumstantial uncertainty coupled with anticipation of an impending interest rate peak in major economies is fuelling demand for government bonds, with German Bunds (BUND10Y) gaining more than 1% today. The same is true overseas, with the UK Gilt and US TNOTE posting gains of more than 1%.
DE30 chart
The DE30 is recording dynamic declines during today's trading session. The German blue-chip index is descending towards 15,000 points and the supports set by the recent minima and the retracement of the 61.8 Fibo. Source: xStation 5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
