© Reuters 5 big financial market events today: the banking crisis is over, 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 Monetary Stability
The Federal Reserve begins its two-day policy meeting today, with nerves on edge in light of the recent banking crisis.
Analysts such as Goldman Sachs believe the Fed will be forced to delay rate hikes given the failure of three US 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 medium-sized regional banks appeared to have eased, with most bank stocks rising. Further calming panicked markets, Goldman Sachs is said to be considering recapitalizing a huge bailout deposit it had previously deposited with First Republic Bank (NYSE: ).
However, Moody’s and Standard & Poor’s have earlier downgraded the credit rating of First Republic Bank (NYSE:).
2.worldBank stocks rebound, Credit Suisse post-shockrelief
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 follow the Swiss example and put shareholder rights in bond payments 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.
The Swiss government previously cleared Credit Suisse’s AT1 bonds to zero in the Credit Suisse bailout transaction, causing bondholders to lose their money, shocking the market and triggering a sell-off of AT1 bonds in other markets. And in order to move the rescue measures forward, the Swiss government hastily amended the law at that time, bypassing the approval of Credit Suisse’s shareholders and creditors. There are fears that this disregard for the rules will spread, undermining the rights of creditors.
3.US stock futures continue to risefocus on Nike financial report
US stock futures continue to rise as fears of a banking crisis continue to fade
Regional bank stocks such as PacWest (NASDAQ: ), Western Alliance (NYSE: ), KeyCorp (NYSE: ), Comerica (NYSE: ), Zions (NASDAQ: ) rose together before the market opened.
The US Treasury Department is studying extending deposit insurance to all deposits, at least temporarily, to smooth out near-term volatility, the report said.
Investing.com’s US stock market shows that as of 21:00 Hong Kong time (09:00 US Eastern Time), blue chip stocks rose 293.4 points, or 0.91%, and stocks rose 33.3 points, or about 0.84% mainly technology It rose by 71.0 points, or 0.57%.
During the day, investors still need to pay attention to the data. Housing data may receive more attention than usual given the recent banking crisis which may have an impact on the mortgage-backed securities on some banks’ balance sheets.
Elsewhere, Nike (NYSE: ) will report earnings after the market closes.
4.The news indicates that Hong Kong’s dollar deposit business is explodingTake off
According to a China brokerage report,recentlySome netizens saidHong Kong’s dollar deposit business explodedTake off.According to the preliminary estimate of the Consortium of Chinese Entrepreneurs, after the explosion in the United States and banks, there may be more than760billion a1600Hundreds 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 immigrants revealed to broker Chinese reporters, at the moment, indeed, there are some heads of listed companies who are making similar plans. After the Silicon Valley Bank incident, many high net worth clients have raised their guard. For financial security, it should be routine to make such arrangements.
5.Crude oil rises as economic concerns easeprice recovery；Focus on US inventory data
Crude oil prices recovered from their lows as the 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 little room for oil prices to fall given the unresolved supply issues.
Tonight, US inventory forecast data will be released, which is also expected to attract market attention.
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Compiler: Liu Chuan