Wall Street closes mixed faced with the threat of the hedge fund Archegos Capital Management. The hedge fund has set off alarms by launching a margin call that promises to hit the figures of such significant entities as Credit Suisse or Nomura. The uncertainty about how far a possible ‘domino effect’ will go imposes sales and, especially, in the financial sector.
The destabilizing effect of the alert multiplied by the usual drop in trading volumes that Easter implies in western markets. A signal that, according to The Wall Street Journal, could be related to the liquidation of large packages of institutional investors in the vehicle commanded by manager Bill Hwang.
Faced with this scenario, which adds uncertainty to an already turbulent market, losses are imposed, albeit in moderation. The Nasdaq it lost 0.1%, losing by the minimum 13,000 points. 0.1% left the S&P 500, so that it remains below 4,000 points. The Dow Jones struggled to hold on to 33,000 points with a 0.3% improvement.
Without strong macroeconomic references, the situation unleashed around this hedge fund acquires greater prominence. A) Yes, Morgan stanley suffers a 3% decline in its capitalization, while Goldman sachs it is left close to one percentage point.
Meanwhile, doubts about the evolution of the vaccination campaign and the ability of social restraint measures to curb the evolution of the fourth wave in Europe continue to weigh on investors. Meanwhile, the World Health Organization (WHO) is expected to publish its conclusions on the origin of Covid-19 in China on Tuesday.
Books, music and vaccinations
In the corporate field, News Corp 2.7% was left after having announced an agreement for the $ 349 million cash acquisition of Houghton Mifflin Harcourt’s book and media business (HMH Books & Media). With this operation, the Rupert Murdoch conglomerate adds to its catalog a collection of more than 7,000 titles that includes the works of JRR Tolkien for the British Commonwealth.
More than 7.4% were left Modern after you have announced a shipment of 100 million vaccines against Covid-19 to the US Government. The pharmaceutical company has promised to comply with the entire schedule agreed with the US administration, which does not save it from the declines.
A friendlier 0.2% is what went up Tencent Music after having announced a plan $ 1 billion buyback for its own Class A shares. The program is designed exclusively for the purchase of shares listed on US markets under the form of ADRs.