What is happening on the stock exchanges is getting uglier: bank shares are being smashed

RockedBuzz
By RockedBuzz 11 Min Read


They also hit the oil

As a result of the increasing problems in the banking system, fears of a recession, which would bring about a drop in energy demand, are growing, as a result of which the price per barrel of Brent crude oil, which is considered a global benchmark, is already down 2.3 percent today.

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Deutsche Bank and UBS are in serious losses

Deutsche Bank shares are already down 14 percent after the cost of insurance against the bank’s insolvency jumped sharply on Thursday night.

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And UBS’s shares fell by 7 percent after Credit Suisse and the American authorities launched an investigation against the bank for evading sanctions against Russian oligarchs.

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Europe is getting lower and lower

Among the leading European stock exchanges, DAX 2 and CAC are already down 2.1 percent.

The Hungarian stock market was also hit, the BUX is already down 2 percent, mainly as a result of the almost 5 percent fall of the OTP.

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They keep hitting the stock markets

The DAX is already down 2 percent, the CAC down 1.9 percent, and the FTSE down 1.8 percent.

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Bank stocks are being hit

As for the shares of major European banks: in addition to the shares of Deutsche bank, the shares of the Dutch ING and the Spanish Santander fell the most.

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At the regional level, Raiffeisen’s shares fell the most, by more than 5 percent.

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They also hit the OTP

OTP’s shares are already down 3 percent today, but they are still above the psychologically important HUF 10,000 price level.

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Traffic is minimal, but above average. During the day so far, 1.53 billion worth of the bank’s shares have changed hands.

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Bank shares are in the crosshairs

Last night, the US Department of Justice initiated an investigation against Switzerland’s Credit Suisse and UBS, whether their executives helped rich Russian businessmen evade anti-Russian sanctions already in effect. And today, partly for this reason and partly for the reason that the price of Deutsche Bank’s insurance against bankruptcy risk continues to rise sharply: on Wednesday the price of the 5-year CDS closed at 142 bp, yesterday it jumped to 173 bp, on Friday and it is already around 210 bp according to intraday data from Markit, although it was still around 80 bp in the first days of March.

Deutsche Bank’s share price is down 8% on Friday morning, which drags down the results of other sector peers, and these concerns are now overshadowing the fact that otherwise all the French, German and Eurozone purchasing manager indices were better than expected in February, according to today’s data releases.

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The leading stock market is in the negative

The DAX is down 1.6, and the CAC and FTSE are both down 1.5 percent.

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Europe is falling

After the opening, the German DAX is down 0.9 percent, and the French CAC index is down 1 percent.

BUX fell by 0.5 percent.

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The Hungarian stock market is in a small plus

After the opening, BUX is at a minimal gain of 0.2 percent.

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You can start the day with direction finding

What are the current events on the stock exchanges?

  • The leading American stock indexes ended yesterday with an increase, the Dow Jones rose by 0.2 percent, the S&P 500 closed with a gain of 0.3 percent, while the Nasdaq rose by 1.3 percent.
  • The Asian stock markets fell this morning, the Nikkei fell 0.9 percent, the Hang Seng was down 0.78 percent, while the CSI 300 was down 0.97 percent.
  • The day can start with a search for direction on the European stock exchanges, based on the current state of the future stock indices, the DAX may rise by 0.56 percent, the CAC may fall by 0.47 percent, while the FTSE may fall by 0.57 percent.
  • The American stock futures indexes are forecasting a rise at the market opening, the Dow Jones may open 0.21 percent higher, the S&P 500 may rise by 0.14 percent, while the Nasdaq may rise by 0.06 percent.

What can be expected on the macro front?

There are also data for the last working day of the week, for example, the KSH publishes the latest February unemployment statistics this morning. In the meantime, the preliminary purchasing manager indices arrive, as usual, the important economic indicator is published in the morning in Europe and in the second half of the day overseas.

March 20-26, 2023 macro calendar
Hungarian macroeconomics
March21Tuesday11:30 a.mAKK3-month dkj auction
March23Thursday11:00 a.mPMDetailed acht accountFeb.
March23Thursday11:30 a.mAKKBond auction
March24Friday8:30 a.mKSHEmployment, unemploymentFeb.
International macroeconomics
March20Monday2:15 a.mChinaInterest rate decision
March20Monday8:00 a.mGerman.Producer pricesFeb.
March20Monday11:00 a.mEUForeign tradeJan.
March21Tuesday11:00 a.mGerman.ZEW indexMar.
March22Wednesday8:00 a.mUKInflationFeb.
March22Wednesday19:00USAFed rate decision
March22Wednesday7:30 p.mUSAJerome Powell’s press conference
March23ThursdayEUEU summit
March23Thursday13:00UKBank of England interest rate decision
March24FridayEUEU summit
March24Friday8:00 a.mUKRetail tradeFeb.
March24Friday9:15 a.mFrench.Advance Purchasing Manager IndexMar.
March24Friday9:30 a.mGerman.Advance Purchasing Manager IndexMar.
March24Friday10:00 a.mEUAdvance Purchasing Manager IndexMar.
March24Friday1:30 p.mUSAOrdering consumer durablesFeb.
March24Friday2:45 p.mUSAAdvance Purchasing Manager IndexMar.
Source: Portfolio collection

What has happened on the stock markets so far?

  • Among the leading American, Asian, European and regional stock indexes this year, the Nasdaq index is at the top with a 16.4 percent shift, the leading one is the Dow Jones index with a 3.1 percent fall.
  • Magyar Telekom’s share performed the best among domestic blue chips this year with a 14.5 percent increase, while Richter’s paper is at the bottom of the list with an 11.1 percent fall.
  • Among the most important raw materials, the price of gold has risen by 9.5 percent since the beginning of the year.
More important instruments
Exchange rateOne day1 week1 monthThis year1 year5 years
US stock indices
Dow Jones32 105.250.2%-0.4%-3.2%-3.1%-6.6%36.4%
S&P 5003,948.720.3%-0.3%-1.6%2.8%-11.4%52.6%
Nasdaq12,729.231.3%1.2%4.5%16.4%-11.9%95.6%
Asian stock indices
Nikkei27,419.61-0.2%1.5%1.2%5.1%-2.2%33.0%
Hang Seng20,049.642.3%4.4%-1.5%1.4%-9.5%-33.8%
CSI 3004,039.091.0%2.5%-1.6%4.3%-5.6%3.4%
European stock indices
DAX15,210.390.0%1.6%-1.7%9.2%6.5%28.0%
CAC7 139.250.1%1.6%-2.4%10.3%8.5%40.1%
FTSE7,499.6-0.9%1.2%-5.2%0.6%0.5%8.3%
FTSE MIB26,482.21-0.2%2.2%-2.9%11.7%9.0%18.8%
IBEX8,970-0.4%0.9%-2.8%9.0%7.7%-4.5%
Regional stock indices
BUX42,906.062.2%5.0%-5.5%-2.0%-3.8%16.1%
ATX3 162.8-0.6%0.5%-8.8%1.2%-5.0%-7.3%
PX1,325.32-0.3%0.5%-4.6%10.3%-1.1%19.6%
WIG2056,983.560.0%0.1%-4.2%-0.8%-11.5%-4.1%
Hungarian blue chips
OTP10,4003.4%9.5%-4.2%2.9%-15.7%-8.0%
Mol2 5463.5%6.2%-8.4%-2.2%-9.1%-9.7%
Richter7,3750.3%-0.1%-4.8%-11.1%2.3%42.9%
Magyar Telekom3880.4%1.6%-1.5%14.5%-3.4%-12.8%
Raw materials
WTI69.96-1.2%2.5%-7.0%-12.8%-40.1%6.3%
Brent75.49-1.5%1.2%-8.3%-11.1%-38.0%7.6%
Ratio1,988.082.1%3.7%9.2%9.5%3.0%47.4%
Silver23.082.0%7.1%8.2%-2.8%-7.3%39.1%
Foreign currencies
EURHUF382.5250-1.5%-3.9%0.6%-4.5%2.6%22.3%
USDHUF351.2627-2.4%-6.3%-2.1%-6.4%3.7%38.8%
GBPHUF434.8550-0.6%-3.4%0.7%-3.7%-3.1%21.5%
EURUSD1.08900.9%2.5%2.8%2.0%-1.0%-11.9%
USDJPY132.67000.0%-0.3%-1.6%-0.4%9.6%26.5%
GBPUSD1.23220.7%1.7%2.5%2.4%-6.7%-12.9%
Cryptocurrencies
Bitcoin28,3433.7%13.1%18.4%70.7%-34.0%217.8%
Government papers
10-year US Treasury yield3.39-1.8%-5.3%-13.1%-11.7%45.8%19.7%
10-year German government bond yield2.19-5.9%-2.3%-9.8%-14.4%404.1%314.6%
10-year Hungarian government bond yield8.56-1.7%-2.9%-3.5%-7.5%31.5%230.5%
Source: Refinitiv, Portfolio

Cover image source: Source: Getty Images

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