S&P500 extends losses; Deutsche Bank down 7% in Wall Street

The sell-off in Deutsche Bank shares pushed main US stocks indexes into negative territory. The S&P 500 is down 15 points or 0.65% at 2155. The decline accelereted during the last two hours, amid a risk aversion environment that boosted the US dollar and the yen in the forex market.

Ealier today, European markets finished in positive territory but futures contracts show main stocks indexes below yesterday’ closing levels.

Deutsche on free-fall

Today shares of the German bank are down 7% in the US. The stock has been falling sharply during the last week, accumulating a decline of more than 50% so far during 2016. The latest slide took place after a Bloomberg report mentioned that some derivative clients have withdrawn “some excess cash and positions”.

The “confidence” problem on the bank continues to weight, not only on the German bank shares, but also creates risk aversion worldwide, taking into account the global exposure of Deutsche. The bank has been under pressure since September 15 when the $14 billion demand from the US Justice Department was revealed.

USD, JPY and CHF

In the currency market the Swiss franc is the best performers followed by the US dollar and the yen, favored by risk aversion during the US session. Commodity currencies are at daily lows. The US Dollar Index rose from a 2-day low at 95.19 back to the 95.50 area.