Market Outlook SVB falls 60%

 

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US Markets Stock futures fell on Thursday night after a negative day for markets on Thursday.  Silicon Valley Bank (SVB) slumped 60% after announcing plans to raise over $2B to balance its finances. SVB's drop triggered a sell-out that affected the financial sector, which lost 4.1% on Thursday, its worst day since 2020. Investors are concerned that many borrowers will default on their loans due to higher interest rates, which could negatively affect banks. Unemployment is expected to stay at a 50+ year low when figures are released later today.  The current 10 Year U.S. Treasury yield is set at 3.91100% Dow Jones  32,254.86 -1.66% S&P 500  3,918.32 -1.85% Nasdaq  11,338.35 -2.05% Russell 2000 1,826.59 -2.81% *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?

Canadian Markets A new report from RBC shows that Canadians continue to be impacted by food price inflation. The cost of groceries in Canada surged 11.4% in January year over year, significantly more than the 5.9% overall inflation rate.  The cost of food from restaurants rose 8.2% in the period.  Canadians are making fewer trips to grocery stores but spending the same amount per trip, a sign that they are more conscientious about their grocery spending.  TSX  20,086.72 -1.28% *Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services

European Markets European markets were down on Thursday as investors factor in the possibility of more aggressive interest rate hikes.  The Stoxx 600 lost 0.19% on the day, led by a 2.7% decline in mining stocks.  The food and beverage industry bucked the trend by rising 0.58%.  The Dutch government wants to restrict exports from ASML, one of the world's largest manufacturers of semiconductor machines. The regulation is in response to pressure from the U.S. government, which wants to stop China from acquiring extreme ultraviolet lithography machines manufactured by ASML.  ASML said the restrictions will apply to machines to make chips that are used in smartphones to laptops but could also be used for AI applications. Euro STOXX 50  4,286.12 -0.05% UK (FTSE 100)  7,879.98 -0.63% Germany (DAX)  15,633.21 0.01% France (CAC 40) 7,315.88 -0.12% *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Asian Markets Asian markets were mixed on Thursday as China reported a decline in inflation.  Consumer prices in China were up 1% year over year in February, the lowest monthly inflation rate in 12 months. Malaysia kept its benchmark interest rate steady at 2.75%. The country's annual inflation rate reached 3.7% in January.  Japan's economy grew 0.1% in Q4 2022, well below the 0.6% growth estimated by economists.  S&P Asia 50 4,524.97 -1.14% Japan (Nikkei 225) 28,623.15 0.63% South Korea (KOSPI) 2,419.09 -0.53% China (Hang Seng) 19,925.74 -0.63% India (SENSEX) 59,806.28 -0.90% *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Commodities Oil prices hit a two-week low after falling over 1% on Thursday amid concerns that more aggressive interest rate hikes in the U.S. will dampen oil demand. Brent lost 1.3% on the day and U.S. West Texas Intermediate fell 1.2%.  Brent and WTI have both lost over 5% following three-day losing streaks this week.  Crude futures were trading slightly higher in Asian trading hours early Friday morning.  Oil (NYSEARCA:OIL) 28.87 -0.86% Gold (NYSEARCA:GLD) 170.20 0.98% Silver (NYSEARCA:SLV) 18.44 0.22% Corn (NYSEARCA:CORN) 24.36 -1.60% Lumber (NASDAQ:WOOD) 73.14 -1.16% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here.

Currency Exchange Rates The U.S. Dollar fell on Thursday after U.S. jobless claims came in higher than expected last week. The Federal Reserve is widely expected to hike rates aggressively at its next meeting, but the increase in jobless claims could prompt some policymakers to call for a more moderate rate increase.  Jobless claims for last week were 211,000 versus expectations of 195,000.  The U.S. Dollar Index fell 0.39% and is currently at 105.25.  UK(GBP) £0.84 -0.81% Europe (EURO) €0.94 -0.44% Canada (Canadian Dollar) $1.38 0.61% Japan (Yen) ¥135.94 -1.05% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them,

Cryptocurrency Bitcoin and Ethereum were both down significantly as markets reacted to Silvergate's liquidation.  Bitcoin fell 7% during U.S. trading hours but was able to hold the $20,000 price point.  Crypto prices were negatively impacted by Silicon Valley Bank (SVB) saying that it needs to raise $2B to offset losses, giving the bank's ties to major tech startups.  The single-figure declines in Bitcoin and Ethereum signaled that the currencies are resilient. For comparison, SVB slumped 60% on Thursday and Silvergate dropped 41%.   Bitcoin $20,075.80 -9.55% Ethereum $1,428.39 -6.79% Litecoin $75.20 -9.13% Bitcoin Cash $109.16 -10.69% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them,