Bank shares bounce after heavy losses, investors cheer reports of Deutsche’s emergency bond buyback plan
Bank stocks have managed to recover some of their lost ground today, following massive sell offs at the start of the week sending shock waves through global equity markets.
Royal Bank of Scotland has made the biggest recovery, soaring by four per cent as investors back track on yesterday’s losses.
RBS was down by over five per cent for the week and the beginning of trading today.
Emerging market focused Standard Chartered has regained 1.5 per cent after losing the most of all the big UK banks yesterday, seeing its share price reduced by over five per cent throughout the day.
HSBC, Lloyds Banking Group, and Barclays are all up by around one per cent in this mornings trading.
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In Europe banks that fared even worse than Britain’s have also staged a miraculous recovery.
Germany’s Deutsche Bank, that is largely to blame for the fright that has hit the sector in recent weeks, has erased its losses earlier in the week.
Between Monday and this morning the bank’s share price fell 15 per cent, though it has now added that back on again, following reports that it will instigate an emergency bond buyback plan.
Yesterday’s big loser in Europe, Credit Suisse, is still down for the week however. It’s share price has bounced by 3.5 per cent today, not quite clearing yesterday’s eight per cent fall.
Banks around Europe first took flight due to global growth fears, low oil and other commodity prices.
Deutsche has said it would be booking write-downs in its fourth quarter.
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Overnight Japan’s stock market fell to a 15-month low, adding to losses earlier in the week.
US markets have opened up however, with the S&P 500 dragging itself off its lowest close since October 2014.