DE30: Spectre of banking crisis spoils sentiment in Europe

• Markets in Europe in panic over problems in banking sector

• Market expectations for rate rises significantly downwards

Monday's trading session on European markets brings panic among investors who fear the impact of the collapse of US banks on the economy. Markets are in for a shock, repositioning themselves in the face of changes in expectations for a cycle of interest rate hikes by the Fed and the ECB. President Biden has communicated that banks will be subject to greater regulation. 

Investor sentiment on the Old Continent deteriorated during Monday's trading session due to uncertainty surrounding the banking sector. Source: xStation 5

• Unsurprisingly, today's investors' attention is focused on the banking sector, where there is indeed a lot going on. The shares of Deutsche Bank (DBK.DE) slid by more than 7% today. Even worse is the case for the shares of Credit Suisse (CSGN.CH), which are losing more than 13%. In this case, Credit Suisse CDSs have reached record levels, increasing the pressure on an already pressurised bank.

Credit Suisse CDSs. Source: Bloomberg

Fraport (FRA.DE) shares are losing nearly 6% today due to another wave of wage strikes. Numerous flights from Berlin, Hamburg and Bremen were cancelled. 

The theme of strikes by employees is also affecting the shares of Deutsche Post (DPW.DE), which has, however, made concessions and agreed with employees on the terms of pay rises and bonuses. The shares lost 1% in the face of market panic.

Changes in institutional holdings in individual companies of the DAX index (data from the last session). Source: Bloomberg

Largest percentage changes and information from individual DAX index companies. Source: Bloomberg

DE30 chart:

DE30 futures record massive declines on Monday and descend towards 14,950 points. Source: xStation 5