It is shaping up to be a Black Friday for the financial markets under heavy concerns about the health of the global banking system. Special watch today is Germany’s Deutsche Bank, whose US shares fell 10.8% in pre-market after the German lender’s credit default swaps surged. The move once again raised concerns about the health of the European banking sector.
Futures linked to the Dow Jones Industrial Average fell 318 points, or 1%. S&P 500 futures fell 0.8%, while Nasdaq-100 futures fell 0.5%.
Wall Street returned from a volatile session Thursday, which ended with solid gains for the major averages. The Nasdaq Composite posted the largest gain, 1%, as tech stocks continued to rally on the assumption that interest rate hikes are about to end. The S&P 500 finished up 0.3%, while the Dow finished up 0.2%.
Looking at the EU, in Piazza Affari the Ftse Mib is currently down by 2.48% to 25,824 points. Among the falling stocks we note those of the banks with Banco BPM at -6.14% and Mps at -5.65%.