US Markets U.S. stocks fell on Friday due to the collapse of Silicon Valley Bank, which suffered a bank run after heavy losses in bond sales. - The collapse of Silicon Valley Bank is the largest failure by a financial institution in the U.S. since the Great Recession.
- Following Friday's losses, the Dow lost 4.44% last week. The S&P 500 fell 4.55% last week and the Nasdaq dropped 4.71%.
- The current 10 Year U.S. Treasury yield is set at 3.70540%
| Dow Jones | 31,909.64 | -1.07% | | S&P 500 | 3,861.59 | -1.45% | | Nasdaq | 11,138.89 | -1.76% | | Russell 2000 | 1,772.70 | -2.95% | *Stock
Market data as of the last closing bell. Data received directly from
the reference indexes through ICE Data Services. Do you not understand
any of these figures?
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Canadian Markets Canadian banks, largely considered the most stable in the world, lost $19.7B in value as investors reacted to the failure of Silicon Valley Bank. - Bank
of Nova Scotia (which operates under the Scotiabank brand),
Toronto-Dominion Bank (operating as TD), and Bank of Montreal (operating
as BMO) all fell more than 2% on Friday.
- The decline in
Canadian banks, which fell more than any other sector on Friday, is
largely attributed to their exposure to U.S. subsidiaries.
- Canadian
banks have recently been purchasing U.S. banks to expand and capture
value in a larger market with a weaker banking system. For example, TD
is in the later stages of acquiring First Horizon, which experienced a
10% decline in deposits in H2 2022.
- Shopify was down
significantly but did not make any public statements; the company is a
major client and partner of Silicon Valley Bank.
- Analysts
believe that Canadian banks' balance sheets will not be significantly
impacted. While Americans tend to move money out of banks when the
economy falls due to their history of failure (as evidenced by a 2%
decline in deposits in U.S. banks in H2 2022), Canadians tend to deposit
more money in their banks, which are more stable than the country's
equity markets (as evidenced by a 5% increase in deposits in Canadian
banks in H2 2022).
*Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services
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European Markets European markets were down on Friday as the sell-off in the banking sector negatively impacted them. - The Stoxx 600 closed down 1.5% on Friday. Bank stocks led losses by falling nearly 4% and financial services dropped 2.8%.
- Major banks, including Deutsche Bank, Barclays, Swedbank, Commerzbank, and HSBC, were all down more than 5%.
- Data from the U.K. showed that the country's economy grew 0.3% in January versus December.
- Food and Utilities were the only sectors to finish in the green on Friday.
| Euro STOXX 50 | 4,229.53 | -1.32% | | UK (FTSE 100) | 7,748.35 | -1.67% | | Germany (DAX) | 15,427.97 | -1.31% | | France (CAC 40) | 7,220.67 | -1.30% | *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.
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Asian Markets Stocks in Asia were down on Friday as investors in the region were also negatively impacted by the decline in the banking sector. - Chinese stocks fell significantly after Xi Jinping was confirmed for a third term as President.
- The Japanese Parliament confirmed the appointment of Kazuo Ueda as the next governor of the Bank of Japan.
- On Thursday, the Bank of Japan left its negative interest rates unchanged.
| S&P Asia 50 | 4,430.09 | -2.49% | | Japan (Nikkei 225) | 28,143.97 | -1.67% | | South Korea (KOSPI) | 2,394.59 | -1.01% | | China (Hang Seng) | 19,319.92 | -3.04% | | India (SENSEX) | 59,135.13 | -1.12% | *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.
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Commodities Oil prices rose on Friday in response to better-than-expected employment data in the United States. - Brent crude gained 1.5% on Friday and U.S. West Texas Intermediate crude rose 1.3%.
- Both benchmarks lost more than 3% last week.
- Non-farm payrolls rose by 311,000 in February, above the 205,000 expected by analysts.
- President
Biden's budget proposal would eliminate subsidies for the U.S. oil and
gas industry that are worth billions of dollars.
| Oil (NYSEARCA:OIL) | 29.18 | 1.07% | | Gold (NYSEARCA:GLD) | 173.87 | 2.16% | | Silver (NYSEARCA:SLV) | 18.86 | 2.28% | | Corn (NYSEARCA:CORN) | 24.58 | 0.90% | | Lumber (NASDAQ:WOOD) | 71.83 | -1.48% | *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities,
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Currencies The U.S. Dollar fell in response to the decline in banking stocks and better-than-expected employment data. - The odds of a 50-basis-point interest rate hike in March have declined to 41%, from 71.6% earlier this month.
- The U.S. Dollar Index lost 0.69% on Friday.
- The Japanese Yen fell after the country's central bank kept negative interest rates.
| UK(GBP) | £0.83 | -0.93% | | Europe (EURO) | €0.94 | -0.69% | | Canada (Canadian Dollar) | $1.39 | 0.16% | | Japan (Yen) | ¥135.02 | -1.02% | *Exchange
rates as of 7 am ET. Data from Morningstar Financial Research. To
understand why we track these currencies and the differences between
them, click here.
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Cryptocurrency Bitcoin has been volatile in the aftermath of Silicon Valley Bank's closure. - On
Thursday, when issues with SVB first came to light, Bitcoin saw a
decline; it rose on Friday morning following strong U.S. jobs data
before falling significantly when SVB bank was closed.
- Stablecoins
were disproportionately impacted by fears of a liquidity crunch. This
led to a significant exodus, with some stablecoins halting transfers
from their coins to dollars.
- Markets began to recover and
stabilize over the weekend after it was reported that USD Coin-issuer
Circle would be able to cover potential losses by its customers.
| Bitcoin | $20,588.40 | 1.13% | | Ethereum | $1,481.36 | 3.57% | | Litecoin | $69.95 | -2.47% | | Bitcoin Cash | $114.37 | 3.62% | *Exchange
rates as of 7 am ET. Data from Morningstar Financial Research. To
understand why we track these currencies and the differences between
them,.
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