From Reuters:
World shares steady as Archegos concerns temper Suez relief
World shares started the week on cautious ground as uncertainty over the fallout of the default of a U.S. hedge fund tempered relief from the refloating of the ship blocking the Suez Canal.
Banks Nomura and Credit Suisse warned on Monday they were facing significant losses after the hedge fund, named by sources as Archegos Capital, defaulted on margin calls.
Investors were bracing for further block trades causing volatility in markets after a $20 billion worth of fire sales on Friday reportedly linked to Archegos hit shares in some big U.S. media and Chinese tech companies.
Developments in the Suez Canal however raised hopes that the vital waterway could reopen and ease global shipping backlogs, sending oil prices lower and offering support to stocks, while currency markets were largely unaffected by Archegos worries.
The MSCI world equity index, which tracks shares in 49 countries, was just above parity by 0809 GMT, while U.S. and euro zone volatility gauges picked up from last week’s lows....
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