UPDATE 2-European stocks edge higher, Credit Suisse tumbles

  • Reuters
  • Stock Market News
UPDATE 2-European stocks edge higher, Credit Suisse tumbles
Credit: © Reuters.

(For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window)

* Credit Suisse at three-month low after flagging losses

* Energy, travel stocks fall on virus concerns

* CD Projekt tops STOXX 600 on leaked Cyberpunk 2077 DLC plans (Adds analyst comments, updates prices throughout)

By Devik Jain and Shreyashi Sanyal

March 29 (Reuters) - European stocks edged higher in a choppy session on Monday, weighed down by Credit Suisse shares, which slumped following a warning of "significant" losses from exiting positions after U.S.-based hedge fund Archegos defaulted on margin calls.

The Swiss bank CSGN.S slipped 13.8% to a three-month low as it said the unnamed hedge fund defaulted on margin calls made last week by Credit Suisse and other banks and said that while it was "premature to quantify" the resulting loss, "it could be highly significant and material to our first quarter results." is unclear whether Archegos is done with its fire sales, and if it isn't, how much it has left to unload," said Connor Campbell, an analyst at Spreadex.

"That also raises questions over the wider ramifications of the hedge fund's troubles, and which companies will be the next to announce they have been stung."

The wider financial services index .SXFP was the worst performer, losing 1.9%, while the banks sector .SX7P , which includes Deutsche Bank DBKGn.DE and UBS UBSG.S , also slipped 0.9%.

The pan-European STOXX 600 index .STOXX edged 0.2% higher, with economy-linked mining .SXPP , oil & gas .SXEP and travel and leisure .SXTP shares among the biggest decliners as French doctors warned a third wave of infections could soon overwhelm hospitals. Angela Merkel also pressed Germany's states on Sunday to step up efforts to curb rapidly rising coronavirus infections, and raised the possibility of introducing curfews to try to get a third wave under control. benchmark STOXX 600 has lagged its U.S. counterpart in the past six months as new lockdowns in the continent and a slower-than-expected vaccination programme dented the economic outlook for Europe.

The export-heavy German DAX .GDAXI rose 0.5% to an all-time high as data over the weekend showed annual profits at China's industrial firms surged in the first two months of 2021, highlighting a rebound in the country's manufacturing sector. other stocks, Hugo Boss BOSSn.DE slipped 1.6% after the German fashion house got caught in a concerted boycott by Chinese celebrities and consumers over Western accusations of forced labour in Xinjiang. CD Projekt CDR.WA jumped 13.1% to the top of STOXX 600 index after plans about the studio's downloadable content for its Cyberpunk 2077 game leaked on Reddit. in defensive sectors such as food & beverage .SX3P utilities .SX6P , media .SXMP , which tend to decouple from the economic cycle, offered some support to the market.

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