It’s the morning after Germany banned naked short sales of key financial stocks — and markets seem not to have liked it one bit.
First, reaction in Germany, as the protected stocks took a hit. Flashes, via Reuters:
RTRS-GERMANY’S DAX FALLS 1.1 PCT
RTRS-DEUTSCHE BANK SHARES FALL 2.1 PCT IN EARLY TRADE AFTER GERMANY BANS NAKED SHORT SELLING
Shares in Commerzbank were down 1.1 per cent, while Allianz was down 1.43 per cent.
And in the rest of Europe:
RTRS-EUROPE’S FTSEUROFIRST FALLS 0.6 PCT TO 1,020.43 POINTS IN EARLY TRADE
RTRS-BRITAIN’S FTSE 100 FALLS 1.5 PCT AND FRANCE’S CAC 40 DOWN 1.7 PCT
RTRS-STOXX EUROPE 600 BANK INDEX DROPS 2.4 PCT, SOCIETE GENERALE DOWN 4.3 PCT, BANCO SANTANDER DOWN 4.5 PCT
RTRS-DUTCH FINANCIALS SINK AS MARKETS FALL BROADLY; ING DOWN 4.2 PCT, AEGON DOWN 3.1 PCT, SNS DOWN 4.6 PCT
On bond markets, UK June gilt futures jumped in early Wednesday trading, hitting 127.84 from Tuesday’s settlement close of 126.8.
Yields on two-year Bund yields also flattened to a record low of 0.444 per cent, according to Reuters.
Related links:
How the Wolf Pack is (already) playing the BaFin ban – FT Alphaville
‘How can a [CDS] market be made?’ – FT Alphaville
Die Leerverkäufer sind kaputt (updated) – FT Alphaville