Shaky Markets Attempt Risky Rally Awaiting Powell | – #Shaky #Markets #Attempt #Risky #Rally #Awaiting #Powell
From Ankur Banerjee Europe and an outlook on the day ahead in global markets
With about 12 hours to go before the Fed announces its policy decision, investors are a bit risk-on to the rally they try.
Saying that he is ready to intervene in bankers to protect depositors in small banks USA Treasury Secretary Janet Yellen’s comments, even in dire straits USA creditor First Republic Bank helped to calm some of the market’s nerves, though it struggled to maintain capital flows held by . sector concerns are alive.
The collapse of Silicon Valley Bank, which is sinking under the weight of losses on bonds due to rising interest rates, is turbulent for banks, with fears of a global meltdown shaking investors. 10 the day began.
And that’s us of the day leading to its main event: the Fed’s policy meeting, which concludes at 2:00 p.m. EDT (1800 GMT) on Wednesday, followed by a press conference by Chairman Jerome Powell a half hour later.
Traders put the probability of a 25-point Fed rate hike at 15%, and the probability of no increase at 85%. Just a month ago, the market was pricing in a 24% chance of a 50 basis point increase.
The past two weeks have raised expectations as the market tightened funding conditions sharply after the collapse of Silicon Valley Bank and Credit Suisse shares fell, prompting a shotgun buyout by Swiss rival UBS on Sunday.
Whether that will be enough to stop central banks from hiking remains to be seen.
The MSCI ex-Japan index rose 1.3%, dollars and gold traded in narrow ranges. Futures Europe shares are likely to to the rally indicated that he would join.
In the corporate world, GameStop posted its fourth-quarter surprise profit for the first time since early 2021, sending its “meme stock” up nearly 50%. Shares of another meme fund, Bed Bath & Beyond, fell below $1, putting the retailer at risk of losing additional funding from hedge fund Hudson Bay Capital Management. The retailer reached an amended agreement with Hudson last week to temporarily lower its price cap to $1 a share until April 3.
Reuters Graphics Reuters Graphics
Key developments that could affect the markets on Wednesday:
Economic events: Big Britain inflation, USA The Fed’s policy decision
Reporting by Ankur Banerjee; Edited by Edmund Klamann
Our standards: Thomson Reuters Trust Principles.
2023-03-22 10:00:29
Source – reuters
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