SniperFx

Archives

  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • September 2022
  • August 2022
  • January 2022
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019

Categories

  • Bonds
  • Brokers News
  • Crypto
  • Forex
  • Forex Trading
  • News
  • Stocks
  • Technology
  • World
Subscribe
SniperFx SniperFx
SniperFx
  • Latest Updates
  • Bonds
  • Brokers News
  • Crypto
  • Forex
  • Forex Trading
  • Stocks
  • World
  • Bonds

Deutsche Bank Stock Forecast DB shares drop 6% at open following bond sell-off

  • March 25, 2023
  • Deutsche Bank stock opens down more than 6%.
  • Jitters reappear following Credit Suisse situation.
  • DB stock likely headed to mid-$7s for support.
  • Deutsche announced Friday morning that it would prepay a tier-2 bond.

Deutsche Bank (DB) is the newest bank that has the market worried. Shares opened down more than 6% on Friday and at the time of writing are trading off -6.8% at $8.99. It could be worse as Deutsche Bank’s bonds rallied in Friday ‘s premarket after the premier German investment bank said it would repay one particular bond early.

Deutsche Bank stock news: Credit Suisse situation still rattling European banks

In the aftermath of the government-backed takeover of Credit Suisse by UBS one week ago, when the Swiss National Bank zeroed out $17.3 billion worth of AT-1 bonds, bonds owned by other European banks have been losing value. Tier-2 bonds from Deutsche Bank initially sold off to 90% of their face value following the Credit Suisse debacle but were still trading for about 94% this morning. Then Deutsche Bank announced it would buy them back early, which prompted other issuances by the bank to increase in value.

Deutsche Bank stock had been trading down as much as 12% in the premarket before the announcement. Likewise, Five-year credit default swaps on Deutsche’s bonds rose from 203 basis points to 220 basis points before the announcement.

Deutsche Bank executives and other large corporate lenders in Europe have emphasized their diverse depositor base after Silicon Valley Bank and Signature Bank in the US both collapsed in light of bank runs. Worries persist though that lending will begin to tighten following the wipeout of Credit Suisse’s AT-1 bonds. 

News in the US has also pushed investors to abandon banks after US Treasury Secretary Janet Yellen said she did not foresee insuring all bank deposits despite rescuing depositors at both Silicon Valley and Signature banks. First Republic Bank (FRC) stock fell 40% this past week, and other banks like PacWest (PACW) have also renewed anxiety. On Thursday the market was also surprised that the Fed’s overnight window lent the US banking system $163.9B this week, which was almost as much as it did the previous week.

Deutsche Bank stock forecast

Breaking through the $9.35 support level seen during last August and September’s double top formation means that Deutsche Bank stock is likely headed for the mid-$7 range. That demand zone held up in the latter of 2022 between $7.25 and $7.66. There is minimal support at $8, but the lower range provides much stronger historical support as it witnessed much more volume months apart. If, however, DB stock breaks back above $9.35, then the stock would appear to be in an uptrend. Bulls entering here will want to make sure there are at least two closes above that level before getting in themselves.

admin

Previous Article
  • News

Fed hikes rates as bank worries spread globally

  • March 25, 2023
Read More
Next Article
  • News

N.B. to end COVID-19 PCR testing for most people April 1, memo reveals

  • March 25, 2023
Read More
You May Also Like
Read More
  • Bonds

Around 147.85, the USD/JPY records a new YTD high; worries of intervention could limit gains

  • admin
  • September 7, 2023
Read More
  • Bonds

Ghana’s sovereign dollar bonds rally before mid-year budget review

  • admin
  • August 1, 2023
Read More
  • Bonds

Pemex gets $3.8 billion from Mexico government, considers tapping bond markets again

  • admin
  • July 31, 2023
Read More
  • Bonds

Why European investors are rushing into some bond ETFs

  • admin
  • July 27, 2023
Read More
  • Bonds

Olive Oil Producer Raises €500K Through Crypto Bonds

  • admin
  • July 26, 2023
Read More
  • Bonds

City officials refinance Old Register Road TAD bonds at higher interest

  • admin
  • July 25, 2023
Read More
  • Bonds

Pension funds to invest in sovereign green bonds How will it impact NPS subscribers

  • admin
  • July 24, 2023
Read More
  • Bonds

Investors buy China bonds despite odds

  • admin
  • July 22, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts
  • Eicher Motors shares surged following Jefferies’ bullish outlook and upgraded target price.
  • The USD/THB faces some side-line trading in the near term (UOB).
  • The euro extends its decline to fresh six-month lows near 1.0570
  • Bitcoin miners strategize for survival amid rising costs and upcoming halving
  • Awareness of non-banks as an option is on the rise.
SniperFx
  • Home
  • About Us
  • Contact
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
Forex & Crypto Updates

Input your search keywords and press Enter.