Global markets shook as Nomura and Credit Suisse warn of losses

A gauge of global equities fell on Monday after Nomura and Credit Suisse warned of billions of dollars in losses from an unnamed US hedge fund’s default, while crude prices slid as container traffic in the Suez Canal resumed.

DUBLIN

Euronext Dublin lagged its European peers on Monday, finishing the day down 0.6 per cent.

The index was mainly dragged down by Paddy Power Betfair owner Flutter Entertainment, which ended the day down 3.3 per cent following a negative broker's note in the UK.

The banks also played a role in dragging the market down, with AIB and Bank of Ireland down 1.4 per cent and 1.8 per cent respectively.

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On the positive side, two big names in the food sector fared well with Kerry Group up 2.2 per cent and Glanbia up 2.7 per cent.

Building materials group CRH – one of the biggest players in the market – also fared well, finishing the day up just over 1 per cent.

In the travel sector low budget airline Ryanair was down 0.6 per cent. "Ryanair has been up and down in recent weeks with lockdown in the UK and whether they can or cannot travel," noted a trader.

LONDON

London’s FTSE 100 ended flat as weakness in banks and consumer discretionary stocks outweighed gains in defensive sectors, although further easing of lockdown measures in England paved the way for a pickup in economic activity.

The blue-chip FTSE 100 index ended down 0.08 per cent, with bank stocks including HSBC Holdings, Barclays and Prudential Financial falling between 1 per cent and 1.8 per cent.

Consumer discretionary stocks were among the top decliners, while defensive plays including consumer staples, healthcare and utilities were among the top advancers.

Nomura and Credit Suisse both flagged significant losses following transactions with an unnamed US client, although both announcements came after Archegos Capital Management roiled financial markets on Friday with a number of significant block trades.

The domestically focused mid-cap FTSE 250 index slipped 0.2 per cent, dragged down by industrials stocks.

EUROPE

European stocks edged higher in a choppy session, weighed down by Credit Suisse shares.

The wider financial services index was the worst performer, losing 1.9 per cent, while the banks sector, which includes Deutsche Bank and UBS, also slipped 0.9 per cent.

The pan- European Stoxx 600 index edged 0.2 per cent higher, with economy-linked mining, oil and gas and travel and leisure shares among the biggest decliners as French doctors warned a third wave of infections could soon overwhelm hospitals.

The export-heavy German Dax rose 0.5 per cent to an all-time high as data over the weekend showed annual profits at China’s industrial firms surged in the first two months of 2021.

Among other stocks, Hugo Boss slipped 1.6 per cent after the German fashion house got caught in a concerted boycott by Chinese celebrities and consumers over Western accusations of forced labour in Xinjiang.

Poland's CD Projekt jumped 13.1 per cent to the top of Stoxx 600 index after plans about the studio's downloadable content for its Cyberpunk 2077 game leaked on Reddit.

NEW YORK

Wall Street’s main indexes fell after a surge in the previous session as global banks said they faced potential losses of billion of dollars from a hedge fund’s default on margin calls.

Shares in Morgan Stanley fell about 4 per cent after the Financial Times reported it had also sold billions of shares, while the banks index shed about 3 per cent. Wall Street's fear gauge rose 2.57 points to 21.50 points.

Planemaker Boeing rose 2.2 per cent after reaching a deal with US budget carrier Southwest Airlines for a variant of the 737 MAX aircraft. Southwest's shares gained 0.5 per cent. – Additional reporting: Agencies