Crédit Suisse, Deutsche Bank Kicked Off Top European Stock Index
Aug. 3, 2016 (EIRNS)—Crédit Suisse Group AG and Deutsche Bank AG are being dropped from the exclusive StoxxEurope 50 Index of blue chip stocks next week, following sharp declines in their share prices this year. Stoxx announced late Aug. 1 that the two banks will be kicked out on Aug. 8, due to the "fast exit" rule, which requires the action if a company on the benchmark ranks 75 or below on the respective Index’s monthly selection lists for a consecutive period of two months. Both Crédit Suisse and Deutsche Bank are down around 50% this year, and have lost almost 90% since their all-time highs hit in 2007.
Yesterday Deutsche Bank lost 4.8%, while Crédit Suisse lost 6.2%.
Stephen Guilfoyle, chief market economist at Stuart Frankel & Co. yesterday wrote in Yahoo Finance:
"There may have been no immediate reaction, but it’s plain to see that financial stocks are being slapped around throughout Europe. If a semi-ridiculous batch of stress-tests that weren’t even graded on a pass/fail basis were not enough, then I guess STOXX Ltd.’s decision to toss Crédit Suisse and Deutsche Bank from the Stoxx Europe 50 Index by next week was trigger enough. European traders said ‘sold!’ to European banking shares today in a big way...."