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Exclusive: Wall Street Examines Risks Around Short-Dated Options As Warnings Rise

NEW YORK, March 10 (Reuters) – An explosion in trading in a type of equity derivative security in recent months has prompted Wall Street players and a major clearing house to examine the potential risks it poses, according to two sources familiar with the matter.

So-called zero day to expiry options (0DTE), which refers to contracts that expire in less than 24 hours, offer retail and institutional traders a relatively cheap, though high-risk, way to bet on intra-day swings in stock prices. They could be tied to the price of indices, exchange traded funds or single stocks.

Full coverage: REUTERS

European Bank Shares Tumble Day After U.S. Market Turmoil

LONDON, March 10 (Reuters) – European banking stocks headed for their largest one-day fall in nine months on Friday, a day after a sharp sell-off in U.S. banks.

Europe’s STOXX banking index (.SX7P) fell 4.2%, set for its biggest one-day slide since early June, with declines for most major names including HSBC (.HSBA.L) down 4.5% and Deutsche Bank (DBKGn.DE) down 7.9%.

S&P 500’s bank index (.SPXBK) finished down 6.6% on Thursday after tech-industry lender SVB Financial Group (SIVB.O) launched a share sale to shore up its balance sheet due to declining deposits from startups struggling for funding.

Full coverage: REUTERS

U.S. Bank Sell-Off Sends Ripples Through Europe’s Lenders

LONDON/FRANKFURT, March 10 (Reuters) – A dramatic sell-off in U.S. bank stocks spilled over into Europe on Friday, as some of the region’s biggest banks saw their shares tumble in their largest decline in nine months.

Europe’s STOXX banking index (.SX7P) fell 4.4% as of 0825 GMT, set for its biggest one-day slide since early June, with declines for most major names, including HSBC (HSBA.L) down 4.5% and Deutsche Bank (DBKGn.DE) down 7.9%.

Full coverage: REUTERS

Oil Headed For Worst Weekly Drop Since Feb On U.S. Slowdown Fears

March 10 (Reuters) – Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States slowing economic growth and hitting fuel demand.

Brent dipped 39 cents, or 0.5%, to $81.20 a barrel by 0745 GMT. U.S. West Texas Intermediate crude (WTI) was down 58 cents, or 0.8%, at $75.14.

Expectations of further rate hikes in the world’s largest economy and in Europe have clouded the global growth outlook and driven both crude benchmarks down more than 5% so far this week, their worst drop since early February.

Full coverage: REUTERS

U.S. Bank Jitters Hit Asia Stocks; Yen Drops With JGB Yields After BOJ

SINGAPORE, March 10 (Reuters) – Falling bank stocks drove Asian markets lower on Friday, while bonds rallied and expectations for U.S. interest rate rises were reduced after a surprise capital raising at a Silicon Valley startup lender unleashed fears of broader banking-system stress.

European and U.S. equity markets looked set to echo those losses when they reopen, with futures pointing lower.

The yen weakened and Japanese government bond yields plunged after the Bank of Japan opted to keep stimulus settings steady at Governor Haruhiko Kuroda’s last meeting in charge, as expected.

Full coverage: REUTERS

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Industry Dynamics

UK Inflation Rate Unexpectedly Rises To 10.4% In February

LONDON, March 22 (Reuters) – British inflation unexpectedly rose to 10.4% in February, pushed up by higher food prices and pricier drinks in pubs and restaurants, official data showed on Wednesday, a day before the Bank of England announces its latest interest rate decision. Economists polled by Reuters had forecast that the annual CPI rate […]

2023-3-22 | Industry Dynamics

Dollar Pauses, Sterling Drops Ahead Of Fed, BoE

LONDON/SINGAPORE, March 21 (Reuters) – The dollar steadied and sterling fell on Tuesday as traders reckoned banking stress would keep the Federal Reserve and the Bank of England from hiking rates much further, or at all, later in the week. Investors remained concerned over the fate of the banking sector after U.S. lender First Republic shares tumbled […]

2023-3-21 | Industry Dynamics

Analysis: UBS Swallows Doomed Credit Suisse, Casting Shadow Over Switzerland

LONDON, March 20 (Reuters) – UBS Group (UBSG.S) emerged as Switzerland’s one and only global bank with a state-backed rescue of its smaller peer Credit Suisse, a risky bet that makes the Swiss economy more dependent on a single lender. The unprecedented move announced late on Sunday in Zurich capped a race against time by regulators to avert a […]

2023-3-20 | Industry Dynamics