NEW YORK (dpa-AFX) – A payment default by a US hedge fund initially spoiled the mood for investors on the New York stock market on Monday. If the standard values on Wall Street had rebounded to their record highs with significant increases in late Friday trading, things should go downwards at the start of the week. Three quarters of an hour before the starting bell of Broker IG, the Dow Jones Industrial estimated the Dow Jones Industrial 0.53 percent lower to 32,896 points. The technology-heavy selection index Nasdaq 100, which was strong on Friday, is also expected to be somewhat weaker on Monday at the start.
The payment default at Archegos Capital threatens to cost several major banks dearly, according to insiders. Credit Suisse warned of potentially high losses. The second largest Swiss bank and a number of other institutions withdrew from positions. According to Bloomberg news agency, Archegos had to sell more than $ 20 billion worth of shares on Friday because of margin calls. The Wall Street Journal even reported $ 30 billion in sales.
On Friday, ViacomCBS shares fell by 27 percent. Other stocks like Discovery have also come under heavy pressure. ViacomCBS slipped another five and a half percent in pre-market Monday trading. Discovery by another two and a half percent.
The Japanese financial group Nomura also warned of a potentially significant loss. The claim amounts to about two billion dollars. According to people familiar with the matter, Nomura is also about Archegos, writes Bloomberg.
Meanwhile, the US bank Goldman Sachs does not expect any high charges from the exit from the dealings with Archegos, as Bloomberg reports, citing a person familiar with the matter. The bank’s loans to the hedge fund are fully secured and Goldman has already exited most of its positions. The Goldman papers slipped pre-IPO by more than two and a half percent. Morgan Stanley lost nearly five percent. According to reports, the house is one of the banks affected.
The shares of the aircraft manufacturer Boeing went up by more than two percent before the market. After the re-registration of its unlucky 737 Max jet, the group received another major order. The US airline Southwest ordered a further 100 medium-haul jets of the 737-Max series and secured purchase options for 155 aircraft./ajx/jha/
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