Market Outlook US bank shares plunge despite government intervention

 

US Markets Stock futures were up overnight after a volatile trading day for U.S. equities.  First Republic Bank gained 15% overnight. The bank closed down 62% on Monday, recovering slightly from a 70% drop earlier in the trading session.  GitLab lost over 30% overnight after announcing lower-than-expected guidance for Q1 and the rest of 2023.  Following the recent collapse of Silicon Valley Bank and Signature Bank, the Biden administration said it will guarantee all deposits above the insured limit of $250,000 per account. The current 10 Year U.S. Treasury yield is set at 3.57510% Dow Jones  31,819.14 -0.28% S&P 500  3,855.76 -0.15% Nasdaq  11,188.84 0.45% Russell 2000 1,744.30 -1.60% *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 Canadian stocks were down on Monday despite some positive news affecting a variety of sectors.  Volkswagen said it plans to build an EV battery production facility in Ontario.  McCain announced plans to invest $600M to double the production capacity of its facility in Alberta.  First Horizon shares were down on Monday as regional bank stocks plunged. First Horizon shares are now 36% lower than the price at which TD agreed to buy the bank for US$13.4B.  TSX  19,588.90 -0.94% *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 significantly on Monday, reacting to the Silicon Valley Bank (SVB) collapse.  Banking stocks lost 5.65% on Monday, their worst day in over a year.  HSBC shares dropped 3.95% after the bank said it plans to acquire SVB's U.K. arm for £1. The Stoxx 600 closed down 2.34%.  Euro STOXX 50  4,096.54 -3.14% UK (FTSE 100)  7,548.63 -2.58% Germany (DAX)  14,959.47 -3.04% France (CAC 40) 7,011.50 -2.90% *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 down on Monday and continued to fall on Tuesday morning. Losses in the banking industry continued to drive down markets in Japan, South Korea, and Australia.  Softbank hit its lowest price since October 2022 after falling 3.5% on Tuesday morning.  Australian consumer sentiment is currently at a 30-year low.  S&P Asia 50 4,469.86 0.90% Japan (Nikkei 225) 27,263.60 -2.05% South Korea (KOSPI) 2,363.59 -1.95% China (Hang Seng) 19,335.66 -1.83% India (SENSEX) 58,294.20 0.10% *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services.

Commodities Oil prices were down on Tuesday morning in Asian trading hours, continuing their decline from Monday.  Brent lost 2.4% on Monday and U.S. West Texas Intermediate (WTI) crude fell 2.5%.  Brent is at its lowest point since early January and WTI is at its lowest point of 2023.  Oil prices are dropping as investors fear that a potential financial crisis will cause a decline in oil demand.  Oil (NYSEARCA:OIL) 28.38 -2.74% Gold (NYSEARCA:GLD) 177.86 2.29% Silver (NYSEARCA:SLV) 20.00 6.04% Corn (NYSEARCA:CORN) 24.42 -0.65% Lumber (NASDAQ:WOOD) 71.34 -0.68% *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, .

Currency Exchange Rates The U.S. Dollar continues to decline as some investors fear there could be a systemic crash in U.S. financial markets following the collapse of Silicon Valley Bank.  The U.S. Dollar Index fell 0.9% on Monday but rose 0.1% in Asian trading on Tuesday, signaling that the USD may rebound after sustaining losses.  Goldman Sachs no longer expects an interest rate hike this month from the Federal Reserve, citing the collapse of Silicon Valley Bank as a stressor on the economy that the Fed did not previously account for.  Investors now estimate a 31% chance that the Fed will leave interest rates steady; that figure was under 1% at the start of last week.  UK(GBP) £0.82 -0.63% Europe (EURO) €0.93 -0.20% Canada (Canadian Dollar) $1.37 -0.28% Japan (Yen) ¥133.89 -0.81% *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 rose significantly on Monday as investors started moving funds into digital assets in response to the uncertainty in U.S. financial markets.  Bitcoin benefited from the lack of stability in stablecoins as some investors moved funds from USDC into Bitcoin.  Coinbase suspended trading of the USD Stablecoin due to liquidity concerns.  The DYDX token surged almost 30% on Monday after the community voted to reduce trading rewards by 45%.  Bitcoin $24,579.00 10.95% Ethereum $1,684.41 0.15% Litecoin $81.46 -0.50% Bitcoin Cash $127.17 4.92% *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them,.