Signs of confidence re-emerge after banking storm | – #Signs #confidence #reemerge #banking #storm
From Anshuman Daga Europe and an outlook on the day ahead in global markets
Market cycles are common, but the scale of recent moves across asset classes due to multiple bank takeovers has shocked even the most experienced traders and investors.
Safe havens like gold and Treasuries are in high demand, along with more speculative instruments like tech stocks and bitcoin, because bank Concerns about the crisis increase different assets.
UBS shares rose in early trade on Monday after Swiss authorities intervened in a shotgun marriage with troubled Credit Suisse, but the bank pared most of its losses at the close.
The biggest pain appears to have been inflicted on holders of the risky debt of Credit Suisse, Switzerland, USA and UK lawyers are due to talk to many Additional Tier 1 (AT1) bondholders about possible legal action, a law firm said.
Asian stocks on Tuesday eased immediate concerns about the impact of the Credit Suisse buyout on other banks, USA and the dollar made an initial recovery, staying close to the five-week minimum.
Europe Central Bank President Christine Lagarde said market turmoil could be part of the ECB’s job to curb demand and inflation.
Markets are high in central banks inflation is in a frenzy about raising interest rates sharply to cope with
But now there may be some surprises.
ECB policymaker Robert Holzmann quickly watered down his recent call for three more consecutive 50-basis-point rate hikes.
Austria National Bank chief Holzmann told German business daily Handelsblatt two weeks ago that the ECB should raise interest rates by 50 basis points at each of its next four meetings.
The ECB made such an increase at its meeting last week.
Meanwhile, memorabilia bearing the 167-year-old bank’s name and logo went on sale in Switzerland hours after troubled Credit Suisse was announced to be state-backed by UBS, marking the end of an era for Credit Suisse.
S&P 500 regional bank included in the index USA market value of regional banks
Key developments that could affect markets on Tuesday:
Meetings: Chinese President Xi Jinping and Russia President Vladimir Putin They are preparing to hold formal talks on Beijing’s proposals for resolving the war.
Meetings: British Chancellor of the Exchequer speaks at the Economic Affairs Committee
Central bank meetings: The Federal Reserve convenes for a two-day monetary policy meeting. The policy decision is on Wednesday
Reporting by Anshuman Daga; Edited by Bradley Perrett
Our standards: Thomson Reuters Trust Principles.
2023-03-21 10:03:36
Source – reuters
Translation“24 HOURS”