Deutsche Bank, UBS Stocks Wobble

Europe’s banking stocks tumbled Friday, Mar. 24, 2023, as investors acted on their lingering worries that the recent crises at some banks could spill over into the wider sector, Anna Cooban reported for CNN.

Photo Insert: Shares in Germany’s biggest bank, Deutsche Bank (DB), plunged as much as 14.5% before paring its losses to close 8.5% lower.

Europe’s Stoxx Europe 600 Banks index, which tracks 42 big EU and UK banks, closed 3.8% lower. The index is down 18% from its high in late February. London’s bank-heavy FTSE 100 index closed down 1.3%.

Shares in Germany’s biggest bank, Deutsche Bank (DB), plunged as much as 14.5% before paring its losses to close 8.5% lower. Shares in UBS (UBS) and Credit Suisse (CS) were 3.6% and 5.2% down respectively.

The cost of insuring against a possible default by Deutsche Bank on its debt has soared in recent days. Deutsche’s five-year credit default swaps (CDS) skyrocketed to 203 basis points Thursday, according to data from S&P Market Intelligence.

That’s their highest level since early 2019. The swaps rose again Friday to trade at 208 basis points at midday ET.

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