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European Bank Weakness Spills into US Pre-Market Trade

EQUITIES
  • European banking weakness spilling well over into US pre-market trade, putting the likes of JPM (-1%), Wells Fargo (-1.4%), Citi (-1.3%) and Morgan Stanley (-1.1%) all lower pre-market.
  • Moves stemming from persistent weakness across European banks, with German names among the sharpest decliners (Deutsche Bank down 12%, Commerzbank down 9%) and at fresh daily lows at typing.
  • CDS spreads remain a particular focus, with Deutsche Bank 5y CDS topping the highest levels of 2022 earlier today as another indicator of underlying banking stresses.
  • While not the core driver, a DoJ announcement that Credit Suisse & UBS were being investigated for any evidence of helping clients skirt Russian sanctions added further weight given the fragility of the sector at present.

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