Credit Suisse and Nomura warn of losses after hedge fund fire sale – business live

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Rolling coverage of the latest economic and financial news

  • Latest: Nomura shares slump 16%, Credit Suisse down 13%
  • Investors: Archegos margin call spooks markets
  • Credit Suisse: Significant US-based hedge fund defaulted on margin calls
  • Introduction: Investment firm Archegos Capital reportedly forced to liquidate positions last week
  • In the UK, consumer credit falls at record pace

12.55pm BST

Ratings agency Fitch has warned that the blocking of the Suez Canal by one of the world’s largest container ships is likely to leave the reinsurance industry facing major losses.

As efforts to shift Ever Given continue, Fitch predicts that the final insurance bill will easily run into hundreds of millions of euros.

“The ultimate losses will depend on how long it takes the salvage company to free Ever Given completely and when normal ship traffic can resume, but Fitch estimates losses may easily run into hundreds of millions of euros,”

“Even when the canal gets reopened, the ripple effects on global capacity and equipment are significant.”

12.40pm BST

Wall Street is on track for a soft opening in under two hours, amid the fallout from the Archegos $20bn margin call.

Here are the latest futures prices, from Marketwatch:

Oh what a night for Globex $SPX futures $ES_M as prices slid steadily until making a low at 3928.75 at roughly 1:40 AM and has stutter stepped it’s way back to -15 now. $NDX $IWM

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