Update 1530 GMT/1030 EST: Equity markets continue to struggle on Monday as the nervousness over Archegos hits risk appetites. The Nasdaq, Dow, and S&P 500 all suffer. ViacomCBS and Discovery are both lower again as investors try to determine if the positions are fully closed out. Deutsche Bank says it is reducing small client positions but does not expect a loss on these. Oh and some good news, the Suez Canal has fully reopened! Oil drops to $60.40 accordingly, and Dallas Fed Index is a strong 28.9 versus 17.2 prior.
Sectors: Energy and Financials both -1.5% while Consumer Staples +0.2% and Health +0.1% are the sector winners so far.
Selected stocks: ViacomCBS -5%, Discovery -2%, Credit Suisse -11%, Nomura -13%, Goldman Sachs -1%, Baidu -4%, Morgan Stanley -4%, SNAP -3%, Tesla -2%, Roblox -6%, GameStop -1%, AMC +1%, Moderna -6%, Boeing +2%, AirBnB +3%.
Here is what you need to know on Monday, March 29:
Bank stocks struggle in Europe as rumours swirl of forced margin call liquidations on Friday. IPO Edge reported several investment banks with links to Archegos Capital Management were behind the sharp sell-offs in tech, media and telecom (TMT) stocks on Friday with ViacomCBS and Discovery shedding nearly 30%. Credit Suisse and Nomura both made statements before European markets opened on Monday warning of losses due to dealings with an unnamed, US-based client. Shares in both are down over 10%, while shares in other investment banks are also suffering. The broader impact is a risk-off theme now in play across equities in particular and rising worries over proposed capital requirements on bank stocks.
The Suez Canal remains blocked, but hope springs eternal as the ship in question is partially refloated. Oil remains elevated though at $61.11. The dollar remains strong at 1.1780 versus the euro, and US 10-year yields remain stable at 1.65%.
European markets are weak apart from the Dax, which is 0.2% higher. The FTSE is 0.8% lower; and the EuroStoxx 0.4% lower.
US futures are all weaker as investors search out other links to investment banking and TMT stocks that may be impacted by the Archegos issue. The S&P is 0.6% lower, Dow 0.6% lower and the Nasdaq 0.3% lower.
S&P 500 top news
The Suez Canal is hopefully moving toward reopening as the blocking ship is partially refloated. High tide later on Monday is hoped to add to progress. Bloomberg reported the ship has been totally freed now.
Visa to allow payment via USDC, a cryptocurrency coin pegged to the US dollar.
Tesla sharply increases the price of its solar roof tiles, according to a report in Electrek.
The US is not ready to lift tariffs on Chinese imports in the near future, according to President Biden's trade representative.
Boeing has resumed deliveries of Dreamliner jet. Southwest Airlines orders 100 737 Max jets.
Cal-Maine Foods reports earnings beating expectations. Shares up 2% in premarket.
Tencent Music announces a $1 billion share buyback. Shares up 7% in pre-market.
ViacomCBS and Discovery shares will be closely watched on the open as investors try to gauge if recent heavy selling pressure has abated.
Deliveroo lowers the price range for its IPO.
Ups and downs
Ford: Jefferies raises price target.
Twitter: Truist upgrades its rating to buy from hold.
Facebook: Deutsche Bank raises price target.
Tesla: Jefferies lowers price target.
ViacomCBS: BMO upgrades.
Credit Suisse: Bank of America downgrades.
Nomura: JPMorgan downgrades.
Hope Depot and Lowe's: Wells Fargo reiterates both as top picks.
Amazon: JPMorgan adds as one of its top picks.
Netflix: Guggenheim reiterates buy rating.
Economic data due
1430 GMT: Dallas Fed Manufacturing Index, previous 17.2.
1530 GMT: US 3 and 6-month bill auctions.
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