News of hedge fund collapse but stocks unaffected so far today

News of hedge fund collapse but stocks unaffected so far today 150 150 Realm

On Friday a massive round of block sell trades hit the US market, triggered, it turned out, by hedge fund Archegos Capital which was forced to sell $20bn of equites to meet margin calls. The sales included huge positions in US media companies ViacomCBS and Discovery which both saw heavy losses on Friday. Investors will be monitoring developments at the US market opens later.

Market sentiment in the UK could get a lift today as lockdown restrictions are eased although the situation in Europe, especially France, seems to be getting worse.

On Wednesday, US President Joe Biden is expected to reveal his new plans for further stimulus measures which could include two new packages with a combined cost of $3 trillion.

Markets are expecting increased volatility in this shortened trading week as institutional investors rebalance their portfolios at quarter-end. These could be significant in light of recent moves in bond yields.


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