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·         Credit Suisse takes hit from U.S. hedge fund; warns of ‘highly significant’ losses

Credit Suisse warned Monday of a “highly significant” hit to to its first-quarter results, after it began exiting positions with a large U.S. hedge fund that defaulted on margin calls last week.

Credit Suisse slides 10% at the open as it warns of ‘significant’ losses following U.S. hedge fund hit

 

·         Stock futures fall slightly in overnight trading after S&P 500 closes at a record

Stock futures dipped in overnight trading Sunday after a rush of broad based late buying pushed the S&P 500 to a record high in the final minutes of the previous session.

Futures on the Dow Jones Industrial Average fell 110 points. S&P 500 futures and Nasdaq 100 futures both traded 0.4% lower.

Investors are awaiting updates from President Joe Biden about his infrastructure plan which could cost north of $3 trillion. The president is expected to unveil his plan when he travels to Pittsburgh on Wednesday. White House press secretary Jen Psaki said Sunday Biden plans to roll out two packages in the coming months, the first covering infrastructure and the second covering health and family care.

 

·         Asia-Pacific stocks mixed; shares of Nomura plunge 16% after flagging potential $2 billion loss

Stocks in Asia-Pacific were mixed on Monday, as markets in India were closed for a holiday.

* The Nikkei 225 in Japan gained 0.71% to close at 29,384.52 while the Topix index advanced 0.46% to finish its trading day at 1,993.34.

But shares of Japanese financial services company Nomura plunged 16.33% on Monday after the firm flagged a potential $2 billion loss at a U.S. subsidiary.

* “Nomura is currently evaluating the extent of the possible loss and the impact it could have on its consolidated financial results,” the company said in a news release. The firm on Monday also canceled a bond issuance that had been priced earlier in March.

* South Korea’s Kospi closed 0.16% lower at 3,036.04.

* Mainland Chinese stocks were higher on the day as the Shanghai composite gained 0.5% to 3,435.30 while the Shenzhen component was marginally higher at 13,771.26.

* Hong Kong’s Hang Seng index sat below the flatline, as of its final hour of trading. Shares of Chinese video platform Bilibili slumped in their Hong Kong debut on Monday, falling nearly 7% from their issue price in early trading. It later pared some losses but remained more than 3% lower in Monday afternoon trade.

* In Australia, the S&P/ASX 200 declined 0.36% to close at 6,799.50.

* MSCI’s broadest index of Asia-Pacific shares outside Japan traded 0.06% higher.

* Markets in India were closed on Monday for a holiday.

* The prospect of faster U.S. economic growth has spurred speculation of rising inflation and weighed on Treasury prices. Yields on U.S. 10-year notes eased a touch on Monday to 1.66%, but were still not far from the recent 13-month top of 1.754%.

* European yields have been restrained by active buying from the European Central Bank, widening the dollar’s yield advantage over the euro. The single currency was last at $1.1786, having hit a five-month low of $1.1760 last week.

* Analysts at TD Securities noted the euro had failed to find any benefit from a very strong German IfO survey on Friday that showed business morale at a near two-year high and signs of recovery in the service sector.

·         Bilibili falls nearly 7% on first day of trade in Hong Kong as Chinese tech stocks face pressure

·         European stocks near record highs on recovery hopes; Credit Suisse slumps

European stocks edged closer to a record high on Monday on optimism over a global economic recovery, while Credit Suisse tumbled following a warning of “significant” losses from exiting positions after a U.S.-based hedge fund defaulted on margin calls.

The Swiss bank fell 9.5% as it said the unnamed hedge fund defaulted on margin calls made last week by Credit Suisse and other banks and said that while it was “premature to quantify” the resulting loss, “it could be highly significant and material to our first quarter results”.

The pan-European STOXX 600 index rose 0.3%, tracking gains in Asia as investors grew confident about a strong global economic rebound from the COVID-19 pandemic, led by the United States.

The export-heavy German DAX rose 0.6% to an all-time high as data over the weekend showed annual profits at China’s industrial firms surged in the first two months of 2021, highlighting a rebound in the country’s manufacturing sector.

 

Reference: CNBC, Reuters