Further to Ryan’s post yesterday we’ve seen Espirito Santo Financial Group, which owns 25% of the lender, suspend trading in its shares and bonds today saying it’s “currently assessing the financial impact of its exposure” to Espirito Santo International, which has missed payments on short-term paper.
While the Bank of Portugal said the lender can avoid “contagion risks,” investors facing losses on the notes may try to make a claim against the bank, according to a Bank of America Corp report
European equity markets are taking a big hit on the contagion fears with PSI 20 down 3.97% at 6119, IBEX down 2.1% at 10532, DAX down 1.45% at 9667, FTSE down 0.8% at 6667, CAC40 down 1.44% at 4296,
US DJI and S&P also getting a knock lower as a result.
Portugese 10-year govt bond yields up 13 bps at 3.94%
Thanks to Amit for heads up and Lilac for this link with more detail from Bloomberg
All adding to a risk-off/safe-haven sentiment as JPY and CHF buying noted too with increasing turmoil in Gaza playing its part
