© Archyde.com 5 major events in today’s financial market: the banking crisis has come to an end, and the focus turns to the Fed’s interest rate meeting
Investing.com – Here are the top 5 things to know in the financial markets for Tuesday, March 21:
1.beautifulThe Fed Faces a Dilemma Between Price Stability and Financial Stability
The Federal Reserve starts its two-day policy meeting today, with nerves on edge in light of the recent banking crisis.
Analysts such as Goldman Sachs believe that the Fed will be forced to pause rate hikes given the failure of three U.S. banks and continued pressure in the mortgage-backed securities market.
However, some analysts believe that the Federal Reserve will continue to raise interest rates, but the rate will be reduced to 25 pips because the labor market is still too hot.
Meanwhile, pressure on mid-sized regional banks appeared to have eased, with most bank stocks rising. Further calming panicked markets, Goldman Sachs is reportedly considering recapitalizing a huge bailout deposit it had previously deposited with First Republic Bank (NYSE: ).
However, earlier Moody’s and Standard & Poor’s have downgraded the First Republic Bank (NYSE:) credit rating.
2.worldBank stocks rebound, Credit Suisse followingshockrelief
The global market is gradually calming down. Before the weekend (19th), UBS announced the acquisition of Credit Suisse, which calmed the market, especially European bank stocks, because European regulators made it clear that they would not follow the example of Switzerland and put shareholders’ rights in bond holdings. before people.
Later, the ECB’s head of banking supervision, Andrea Enria, is due to speak, which is expected to provide further reassurance to markets.
Previously, the Swiss government cleared Credit Suisse’s AT1 bonds to zero in the bailout transaction of Credit Suisse, causing bondholders to lose their money, shocking the market and triggering the sell-off of AT1 bonds in other markets. And in order to advance the rescue measures, the Swiss government urgently amended the law at that time, bypassing the approval of Credit Suisse shareholders and creditors. There are fears that this disregard for the rules will spread, undermining creditor rights.
3.U.S. stock futures continue to rise,focus on Nike financial report
U.S. stock futures continue to rise as fears of banking crisis continue to fade
Regional bank stocks such as PacWest (NASDAQ: ), Western Alliance (NYSE: ), KeyCorp (NYSE: ), Comerica (NYSE: ), Zions (NASDAQ: ) collectively rose before the market opened.
The U.S. Treasury Department is studying extending deposit insurance to all deposits, at least temporarily, to smooth out near-term instability, the report said.
Investing.com’s U.S. stock market shows that as of 21:00 Hong Kong time (09:00 U.S. Eastern Time), blue-chip stocks rose 293.4 points, or 0.91%, and rose 33.3 points, or regarding 0.84%, mainly technology stocks It rose 71.0 points, or 0.57%.
During the day, investors still need to pay attention to the data. Housing data may get more attention than usual given the recent banking crisis that might have an impact on the mortgage-backed securities on some banks’ balance sheets.
Elsewhere, Nike (NYSE: ) will report earnings following the market closes.
4.The news indicates that the Hong Kong dollar deposit business is explodingLift
According to a brokerage China report,recentlySome netizens saidthe Hong Kong dollar deposit business explodedLift.According to the preliminary estimate of the Chinese Entrepreneurs Consortium, following the explosion in the United States and banks, there may be more than760billion and1600Hundreds of millions of Chinese assets were withdrawn from the United States and Switzerland, mainly to Hong Kong, Singapore, Canada, Australia and other places, and Hong Kong was the first choice for these funds.
Industry insiders revealed to brokerage Chinese reporters that at present, there are indeed some bosses of listed companies who are making similar plans. After the Silicon Valley Bank incident, many high-net-worth clients have raised their vigilance. For financial security, making such arrangements should be a matter of course.
5.Crude oil rises as economic worries easeprice recovery；Focus on U.S. inventory data
Crude oil prices recovered from their lows as an easing of the banking crisis eased fears of an economic slowdown later this year.
As of 21:00 Hong Kong time (09:00 am Eastern Time), Investing.com Commodity Markets showed: up 1.46% to $68.81/barrel; down 1.18% to $74.66/barrel.
The chief executive of Trafigura, one of the world’s largest traders, also pointed out that there is not much room for oil prices to fall given the unresolved supply side issues.
Tonight, the US inventory forecast data will be released, which is also expected to attract market attention.
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Compiler: Liu Chuan
