Wall Street closed this Friday in green and the Dow Jones Industrialsits main indicator, rose a 0.41% in a volatile day that was altered by the collapse of the shares of Deutsche Bank, which revived concerns about the banking sector and fear of recession.
At the close of operations, the Dow Jones added 132.28 pointsuntil 32 thousand 237.53 unitsand the selective S&P 500 added a 0.56% o 22.27 integersuntil three thousand 970.99 points.
For its part, the composite index of the Nasdaq market, in which the main technology companies are listed, added a 0.31% o 36.56 unitsuntil 11 thousand 823.96 integers.
The New York parquet closes the week with accumulated gains, although today it started in the red after the commotion caused in the European stock markets by the stock market debacle of the German financial giant and later recovered.
The fall of the titles of Deutsche Bankwho came to lose more than one 14% of its value, occurred after the entity announced that it plans to amortize one thousand 500 million dollars of subordinated debt May 24before its expiration in 2028.
The bank assured that it has “all required regulatory approvals” for that decision, but the news caused a deep impact in the banking sector.
This unexpected shock, which affected the European stock markets, occurs when Wall Street seemed to be leaving behind the storm that intensified in the United States in the past two weeks and which swept away the Silicon Valley and Signature banks.
The First Republic bank, the bank hardest hit by the financial crisis in recent days and rescued by the big banks with an injection of 30 billion dollarshe saw his shares devalue this morning close to a 5%.
The analyst Larry McDonald, founder of the Bear Trap report, assured the CNBC channel that the fall in the shares of Deutsche Bank and, before, of the Swiss Credit Suisse, is due to the fact that investors had not noticed their mismanagement until the crisis. unleashed by the Silicon Valley bank.
“Banks like Credit Suisse and Deutsche Bank have been horribly managed for decades, and we’re talking about really poor management and horrible decisions and all of a sudden investors all over the planet are focused on that,” McDonald said.
On Wednesday, the Federal Reserve (Fed) of USA announced its decision to increase interest rates in 0.25 points and its president, Jerome Powellemphasized the credit risks of the banking sector.
Powell said stress in the banking industry could trigger a credit crunch, with “significant” implications for the economy.
Most sectors closed in the green, led by public services (3.12%)real estate (2.57%) and essential goods (1.63%)and only non-essential goods were affected (-0.35%) and the financial (-0.06%).
Among the 30 Dow Jones stocks, gains predominated, including those of Amgen (2.11%), P&G (2.07%) and Coca-Cola (1.64%)against the losses of Disney (-1.82%), American Express (-1.81%) y JpMorgan (-1.51%).
In other markets, Texas oil closed at $69.26 a barreland at the end of the trading session the profitability of the US 10-year bond fell to 3.374%, gold yielded to thousand 979 dollars an ounceand the dollar gained ground against the euro, with a change of 1.0759.
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