Deutsche Bank Concerns Re-Emerge

Good morning contrarians! It is Friday, March 24.

State of Play

As of 0635 there are some re-emerging fears about Deutsche Bank (DB 0.00%↑) that is weighing on risk appetite and leading to a major rally in bonds:

• Stock futures are pointing to a drop at the open, with the S&P 500 down ~0.8%. European stocks are selling off at mid-day with most bourses down >2%. Deutsche Bank stock is down more than 10% in Frankfurt. Here in the US bank stocks are taking on water as well. First Republic Bank (FRC 0.00%↑) is down 3% but keep an eye on Bank of America (BAC 0.00%↑) down 2%;

• Bonds are rallying, especially at the short end of the curve. The yield on the 2-year is down 18 basis points to 3.62% with the 10-year yield down 10bps to 3.30% (yields move inversely to prices);

• Commodities are dropping, with WTI crude oil down 4% to trade around $67/barrel. Copper is down 1.5%;