Sat, 17 Apr 2021

Wall Street directionless after U.S. hedge fund default

Lola Evans
30 Mar 2021, 06:10 GMT+10

NEW YORK, New York - U.S. stocks were mixed on Monday with the Nasdaq Composite and S&P 500 losing ground, while the Dow Jones made a modest gain.

Credit Suisse Group and Nomura Holdings were under pressure after disclosing they were exposed on positions to a hedge fund.

"A significant U.S.-based hedge fund defaulted on margin calls made last week by Credit Suisse and certain other banks," Credit Suisse said in a statement. "Following the failure of the fund to meet these margin commitments, Credit Suisse and a number of other banks are in the process of exiting these positions."

"It now appears, according to reports, that the selloff was the result of a liquidation from a fund called Archegos Capital Management, after some its positions moved offside, raising some concerns about a trickle-down effect to other stocks," Michael Hewson, chief market analyst at CMC Markets said in a note, according to MarketWatch. "We'll see whether those concerns are well-founded later today," he wrote.

At the close of trading Monday, the Dow Jones industrials were ahead 98.49 points or 0.30 percent at 33,171.37.

The Nasdaq Composite declined 79.08 points or 0.60 percent to 13,059.65.

The Standard and Poor's 500 dipped 3.44 points or 0.09 percent to 3,971.10.

The U.S. dollar consolidated recent gains. It was firm against the euro at 1.1767 around the New York close Monday. The British pound was fetching 1.3764. The Japanese yen remained weak at 109.71. The Swiss franc was unchanged at 0.9392.

The Canadian dollar inched up to 1.2593. The Australian dollar was a tad firmer at 0.7634. The New Zealand dollar regained the 0.7000 mantle but nothing more.

In Europe, the CAC 40 in Paris, France advanced 0.45 percent. The Dax in Germany gained 0.47 percent. London's FTSE meanwhile fell 0.07 percent.

Asian markets, the Australian All Ordinaries index was down 26.70 points or 0.38 percent t at 7,036.40.

The Nikkei 225 in Japan added 207.82 points or 0.71 percent to 29,384.52.

In Hong Kong, the Hang Seng was well in the red for most of the day, but by the close had managed a 1.87 points, or 0.01 percent gain, to finish at 28,358.30.

China's Shanghai Composite rose 16.97 points or 0.50 percent to 3,434.30.

More Beijing News

Access More

Sign up for Beijing News

a daily newsletter full of things to discuss over drinks.and the great thing is that it's on the house!