Another black day for the European stock market. A day after the crisis Credit Suisse closed, now the German business of Deutsche Bank is affected.
The powerful German bank suffered a critical day in which it fell by almost 15% and, although it rose somewhat at the end, it fell by 8.52% and destroyed the main European banks, including the Spanish ones.
Thus, the Euro Stoxx 600 index for banking sectors reported a fall of 2.53% at the close, with Deutsche Bank leading the decline, with a fall of 8.53%. On the other hand, and even more so with the figures, the Danish Sydbank, the company that fell the most in the close of this Friday, with a decrease of 10.88%, followed by the Scandinavian Nordea, which did the same with 8.54%.
The largest bank in Germany, whose cost of collateral against non-performing loans (CDS) has been reported to have increased significantly, this Friday announced its intention to repay 1,500 million euros (1,379 million euros) in level 2 subordinated fixed-rate debt. . 2028, on May 24, 2023 at 100% of the principal amount, together with interest until the date of redemption (excluding).
Contagion results in Europe
In Spain, the IBEX lost a good part of its recent gains, dropping 1.98% this Friday, down 177.5 points, to 8,792.5.
The fall was widely publicized and only Cellnex was included in the selective green list. The worst part is, another day the banks try. The bank led the case with a decrease of 5.38%, followed by BBVA (4.43%), Banco Sabadell (4.28%), Unicaja (4.06%) and Santander (3%).
With a photo similar to the Spanish, albeit slightly milder, selective Paris, the CAC-40 fell by 1.74%. Its big banks contributed to this, especially Societe Generale, with another bump of 6.13%. BNP Paribas left 5.27% and Crédit Agricole 2.06%.
Scholz believes there is no “cause” to worry about
The German Chancellor Olaf Scholz stated this Friday in Brussels that Deutsche Bank is a “compromised” entity, to ensure “no reason”, despite the collapse of approximately 15% of its shares on the stock market.
“Deutsche Bank has modernized its business model. It is a profitable bank,” said Scholz, when asked at a press conference at the end of the European Council about the possibility of contagion behind the backers of Silicon Valley and Credit Suisse.
“There is no reason,” he decided, when asked if he feared that the next German bank would become Credit Suisse and if the German government was prepared to help.
