Shares of Europe’s largest banks dropped on Monday after extending credit to a major client that couldn’t meet its obligations.
A margin call triggered on Friday of U.S. investor Archegos Capital Management continued to ripple through markets. Nomura
shares skidded 16% in Tokyo after it said it had a claim of $2 billion against a U.S. client, while Credit Suisse
fell 14% in Zurich after it said a U.S. hedge fund defaulted on margin calls.
Archegos holdings that were sold to meet margin calls included positions in U.S. media companies ViacomCBS
and Chinese internet companies Baidu
“Last week’s back and forth battle between the recovery optimists and the lockdown fretters ended with the bulls regaining the upper hand, and many global equity markets begin this Easter-shortened week within striking distance of their recent, or in some cases all-time, highs,” said Ian Williams, strategist at U.K. broker Peel Hunt.
The Ever Given container ship was refloated, an important step in unclogging the Suez Canal, which now has a backlog of 450 ships.