Live Markets: The $1 billion disruption

Hannover Rueck SE

23/07/2024 10:18

* 
      STOXX 600 up 0.2%
    

        * 
      Tech leads, miners lag
    

        * 
      Earnings lift SAP
    

        * 
      Wall St futures lower
    

  
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You
can share your thoughts with us at     
    

    THE $1 BILLION DISRUPTION
    Friday's widespread internet outage, caused by an update at CrowdStrike, could lead to
"meaningful" claims for European insurers, but Barclays analysts expect the hit to be manageable
for the market.
    Based on company exposures, Barclays identifies Munich Re, Beazley, Hannover Re and Swiss Re
to be among the largest cyber underwriters across the primary and reinsurance markets.
    "At present due to the short duration of the accident and the non-malicious nature of it we
would expect industry impact of US$1bn or less," writes Barclays. 
    "This should limit the potential impact for listed cyber market leaders to mid/high double
digit millions, or up to low triple digit millions for Munich Re - an equivalent to a
small-sized hurricane or a European wind event."
    Beazley, which slipped 3.3% on Friday, has reiterated its guidance on Tuesday despite
Friday's outage. Shares are up 1.9% today.  
    Deutsche Bank looks at the impact on CrowdStrike itself following the outage, interestingly
unable to publish its thoughts on Friday. 
    "Our initial reaction on Friday was seeing a 10%+ pullback in a high-quality stock as a
buying opportunity," Deutsche Bank wrote on Monday. 
    "However, we were ironically unable to publish our original research due to the outage
itself."
    Ultimately, the German bank still expects this to be a "defining moment" from which they
expect CrowdStrike to recover and thrive.
    Shares in CrowdStrike are down over 23% from their closing price on Thursday, the last
trading day before the outage.
    
    (Samuel Indyk)
    ***** 
    
    TUESDAY'S OTHER LIVE MARKETS POSTS:
    EUROPEAN STOCKS MOSTLY LOWER, GERMANY OUTPERFORMS CLICK HERE
    EUROPEAN FUTURES MIXED, EARNINGS KICK INTO GEAR CLICK HERE
    TESLA, ALPHABET EARNINGS TAKE CENTRE STAGE CLICK HERE