Europe wakes up – Investors dislike rising Big Tech credit risks [Video]
|US and most Asian markets were closed on Monday, leaving Europe to trade quietly. Yields followed US peers lower, while defence and bank stocks outperformed — a reflection of souring relations with the US. Meanwhile, risk appetite for tech remains fragile this Tuesday morning. The AI investment race is capital-hungry, and leveraged spending is under the spotlight.
Rising activity in credit derivatives shows the market is hedging what was once considered negligible credit risk. CDS linked to giants like Meta, Microsoft and Alphabet are gaining traction — a clear warning that the balance sheet story is now front and centre.
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