Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Lack of clarity over Archegos fallout causes cautious start in Europe

By Spreadex (Connor Campbell)Market OverviewMar 29, 2021 09:22
uk.investing.com/analysis/lack-of-clarity-over-archegos-fallout-causes-cautious-start-in-europe-200465918
Lack of clarity over Archegos fallout causes cautious start in Europe
By Spreadex (Connor Campbell)   |  Mar 29, 2021 09:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Despite a strong close from the US last Friday, European investors hesitated after the bell on Monday.

The FTSE 100 failed to celebrate the first step of the UK’s spring awakening, trickling 10 or so points lower, dropping to 6,730, while the pound was equally unenthused, flat against dollar and euro alike.

That same timidity had a green tinge to it in the Eurozone, where the CAC 40 and DAX were both up 0.2%, leaving the latter short of its 14,800-plus all-time highs.

This early reticence may be tied to the Archegos Capital situation. Friday saw significant losses for ViacomCBS Inc (NASDAQ:VIAC), Discovery Inc Class A (NASDAQ:DISCA), and a selection of Chinese tech stocks, without immediate explanation.

Over the weekend it was then revealed that a margin call-hit Archegos was behind the selling, leading to warnings of ‘significant’ losses from Credit Suisse Group AG (SIX:CSGN) and Nomura Holdings Inc (T:8604) on Monday morning.

It is unclear whether Archegos is done with its fire sales, and, if it isn’t, how much it has left to unload. That also raises questions over the wider ramifications of the hedge fund’s troubles, and which companies will be the next to announce they have been stung.

Reflecting the air of caution in Europe, the Dow Jones Industrial Average is currently heading for a 0.3%, or 115 point, decline when trading starts Stateside. That’d knock the index back below 33,000 and leave a record-high close to the month in peril.

 

Lack of clarity over Archegos fallout causes cautious start in Europe
 

Related Articles

Lack of clarity over Archegos fallout causes cautious start in Europe

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email