UBS Group AG (USA) UBS shares are trading lower by $0.46 at $13.11 in Thursday's session. The weakness in Deutsche Bank DB shares, which are trading lower by $0.82 at $11.58, is spreading to other European financial institutions.
Rumors that 10 hedge funds were reducing their exposure to Deutsche Bank sent the entire market and especially financials into a tailspin.
UBS found resistance off the open $0.02 below Wednesday's high ($13.59) at $13.57 and began to drift lower when the rumors surfaced regarding Deutsche Bank.
The pace of the decline accelerated with the decline in Deutsche Bank shares, taking UBS to $13.07. That is just above a trio of lows in the issues from $12.93 to $13.12 from August 2-4.
At this time, UBS hasn't been able to distance itself from session lows.
The Financial Select Sector SPDR Fund XLF plummeted on the news and was recently down 1 percent at $19.11.
Other European banks to fall include Credit Suisse Group AG (ADR) CS, down 4 percent to $12.38, and Royal Bank of Scotland Group PLC RBS, down 3 percent to $4.54
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