US and European equity futures wiped out gains and the dollar fluctuated as investors weighed efforts to safeguard the global banking system. The two-year Treasury yields retraced an earlier rebound. Positive early readings on UBS Group AG’s agreement to buy Credit Suisse Group AG and central bank moves to boost dollar liquidity gave way to a more cautious sentiment as the trading day progressed. Financial stocks in Asia slid, led by HSBC Holdings Plc, whose shares dropped more than 6% in Hong Kong on concern over risky bond exposures related to Credit Suisse. The additional tier-1 bonds issued by some Asian banks fell by a record after a Swiss regulator earlier said $17 billion of such AT1s from Credit Suisse would be wiped out. Equities benchmarks for Australia, Japan and Hong Kong extended declines. Contracts for the S&P 500 gave up all of its gain for Monday after the US index dropped in excess of 1% on Friday, dragged down by the financial sector. A dollar gauge swung between small gains and losses. Currencies including the yen, the Australian and the New Zealand dollars dropped in a choppy trading. The Swiss franc and the euro also fluctuated. The policy-sensitive two-year Treasury yield, which slumped over 30 basis points on Friday, erased an earlier rise of as much as 18 basis points. Traders are trying to assess the Federal Reserve’s next move amid the recent financial instability and a softer-than-expected reading on inflation expectations. Much of the debate in markets is now focused on whether the Fed will deliver another quarter-point hike or pause at its March 21-22 meeting. Traders no longer see much chance of a bigger half-point hike that Chair Jerome Powell had put on the table just before concerns about financial stability emerged. Policymakers are rushing to shore up confidence after the collapse of Silicon Valley Bank and problems at Credit Suisse added to broader concerns over financial stability. UBS’s government-backed takeover of Credit Suisse seeks to address client outflows and a massive rout in the target’s stock and bonds.
The Fed and five other central banks announced coordinated action to boost liquidity in US dollar swap arrangements to ease strains in the global financial system. Yield on the policy-sensitive three-year Australian bond slipped about 17 basis points to 2.85%, taking it further below the Reserve Bank’s 3.6% cash rate. Bitcoin fell slightly from its highest level since June. Oil and gold dropped.
Nikkei -1.42% Hang Seng -3.40% CSI -0.53% Shanghai -0.50% Shenzen -0.36%
Eur$ 1.0675 CNH 6.9035 CNY 6.9023 JPY 131.86 GBP 1.2187 CHF 0.9257 RUB 77.0121 TRY 19.0100 WTI$ 66.18 -0.84% Gold 1,975.15 -0.71% BTC 27,510 -1.66% ETH 1,759
S&P -1.03% Nasdaq -0.75% EuroStoxx -1.30% FTSE -1.57% Dax -1.09% SMI -1.15
Macro :
- Germany Can’t Rule Out Gas Shortage Next Winter, Regulator Says
- Germany Can’t Rule Out Gas Shortage Next Winter, Regulator Says
- BOE Won’t Object to UBS Takeover of Credit Suisse: Sky
- El-Erian Says Credit Suisse Outcome ‘Not Clean,’ But Best Option
Keep an eye on :
Keep an eye on :
- AIR FP : Boeing to Produce 184 Apaches for U.S. Army, Other Customers
- AKAST NO : Akastor in Pact to Sell AGR to ABL Group in Cash, Share Deal
- CITY LN : Virgin Media O2 in Talks Over Bid for Cityfibre: Telegraph
- CSGN SW : UBS Chairman Says Determined to Keep Credit Suisse’s Swiss Unit
- DBK GY : Deutsche Bank Is Said to Study Opening for Credit Suisse Assets
- EQNR NO : Equinor Sells 28% Working Interest in PL037 to Okea for $220m
- 3333 HK : Evergrande Is Said to Get Creditor Support for Restructuring
- ORA FP : Orange Planning Job Cuts at Business Services Unit: Echos
- ROG SW : Roche: New Data Back Evrysdi Long-Term Efficacy, Safety Profile
- SEBA SS : SEB Has No Meaningful Exposure to Banking Fallout, CEO Tells DI
- SHLF NO : Shelf Drilling 4Q Adjusted Ebitda $75.5M Vs. $65.8M Q/Q
- SIVB US : FDIC Said to Move Toward Breakup Plan for Silicon Valley Bank
- 4502 JP : Takeda’s $4 Billion Psoriasis Drug Hits Goal in Mid-Stage Study
- UBSG SW : UBS to Buy Credit Suisse in $3.3 Billion Deal to End Crisis
- UBSG SW : UBS Is Said to Seek Swiss Backstop in Any Credit Suisse Deal
- UBSG SW : UBS Is Said to Seek Swiss Backstop in Any Credit Suisse Deal
- UBSG SW : UBS’s Chairman Vows to Shrink Credit Suisse’s Investment Bank
- VAR1 GY : Varta to Raise up to EU50 Million in Capital Increase
- VOW GY : VW Home State Leader Says He’s Worried About Economic Future