U.S. futures, stocks drop as bank woes grip Traders - BNN Bloomberg

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U.S. equity futures fell, wiping out earlier gains, and declines in European stocks were led by banks as concerns about the stability of the sector gripped traders before the weekend.

With a risk-averse mood spreading through markets, bonds and the dollar rallied.

UBS Group AG shares dropped as Bloomberg reported that it’s one of the banks under scrutiny in a US Justice Department probe into whether financial professionals helped Russian oligarchs evade sanctions, according to people familiar with the matter. “Confidence is fragile, market volatility is likely to stay high, and policymakers may have to go further to make sure faith in the global financial system stays solid,” said Mark Haefele, chief investment officer at UBS Wealth Management. “Financial conditions are also likely to tighten, which increases the risk of a hard landing for the economy, even if central banks ease off on interest-rate hikes.

The dollar headed higher after weakening in the previous six sessions. The yen advanced to the highest in six weeks, boosted by demand for haven assets. Crude oil slumped as the renewed concerns over financial sector stability boosted the dollar. Gold gained.

 

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