Rolling coverage of the latest economic and financial news
- El-Erian: Margin call drama seems to be one-off
- Nomura shares slump 16%, Credit Suisse down 13%
- Investors: Archegos margin call spooks markets
- Credit Suisse: Significant US-based hedge fund defaulted on margin calls
- Introduction: Investment firm Archegos Capital reportedly forced to liquidate positions last week
- In the UK, consumer credit falls at record pace
In London, the FTSE 100 index has closed just 4 points lower at 6736 points.
It wasn’t the most eventful day in the City – housebuilders, miners and travel companies fell, while defensive stocks such as utilities, tobacco firms and consumer goods makers rallied.
Danni Hewson, financial analyst at AJ Bell, says its no surprise that Wall Street lost ground this session:
“Rumours continue to swirl about exactly which companies have been caught up in the Archegos saga and how badly. So far, it’s the investment banking sector bearing the brunt with Morgan Stanley and Goldman Sachs both trading down.
“There are already questions being asked about why so called ‘family offices’ are exempt from much of the scrutiny enjoyed by hedge funds and calls for the system to be tightened. With the numbers quoted today suggesting as much as $6tn is currently under the management of such firms, there is the expectation change must come quickly.”
