Markets Today: Bitcoin Hits 3-Month Lows, Gold Eyes Biggest Weekly Gain in 5 Years on US Lender Concerns. FTSE 100 Finds Support
European stock markets dropped sharply on Friday, on track for their biggest weekly loss in six weeks, as fears about the financial health of US regional banks spread to lenders across the continent.
The main STOXX 600 index for Europe fell by 1.5%. The banking sector was hit hardest, sliding 2.4%, with major banks like Deutsche Bank, Barclays, and BNP Paribas all seeing their shares fall.
This panic originated on Wall Street and continued in the Asian session.
Separately, the share price of Danish drugmaker Novo Nordisk fell 4.6% after US President Donald Trump announced that the price of their popular weight-loss drug would be lowered following swift negotiations.
Meanwhile, shares in Spanish bank BBVA jumped 7% after its massive hostile takeover bid for a rival, Sabadell (down 7%), failed to win shareholder support. BBVA immediately announced it would resume rewarding its own shareholders instead.
On the FX front, the US dollar continued to weaken on Friday and is headed for its biggest weekly drop in almost three months.The overall dollar index fell slightly by 0.1%, putting it on track for a significant weekly loss.
This decline is largely blamed on the extended US government shutdown, which has stopped the release of key economic data, making investors nervous.
The Japanese yen gained 0.2% against the dollar, momentarily strengthening past the key 150/USD level for the first time in nearly two weeks. This gain comes as Japan’s parliament scheduled a vote for the next Prime Minister on October 21st, per Reuters.
Both the euro (up 0.2%) and the British pound (sterling) (up 0.1%) also made small gains against the weaker dollar.
Bitcoin’s price dropped sharply on Friday, hitting its lowest level since early July. Market participants appear to be trimming exposure due to mounting concerns around tighter regulatory scrutiny.
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