- As investors weighed a frenetic weekend of efforts to safeguard the global banking system, US and European equity futures rose, while the dollar fluctuated and Treasuries fell.
- Early indications from UBS's agreement to buy Credit Suisse and central bank moves to increase dollar liquidity suggested that sentiment was improving. Two weeks of multiple US bank failures, followed by more problems at Credit Suisse, had added to the growing belief that global economies would struggle.
- After the US index fell more than 1% on Friday, dragged down by the financial sector, Euro Stoxx 50 futures gained about 0.5% and S&P 500 futures gained 0.4%. As the Asian trading morning progressed, the gains began to shrink.
- Contracts for the Nasdaq 100 rose around 0.2% after the index had its best week since November, rising 5.8%, despite a drop on Friday. Technology stocks, which often benefit from lower interest rates, have been supported by concerns that the turmoil in the banking sector will tip the global economy into recession, forcing central banks to reverse course on monetary tightening.
- A dollar index fluctuated between small gains and losses. In choppy trading, the Swiss franc fluctuated, the yen fell, and the risk-sensitive Australian dollar gave up an advance. Commodity markets indicated a modest return to risk-taking. Crude oil rose after falling by more than 10% the previous week, while copper futures rose as well. Gold has dropped from a one-year high. Nonetheless, equity benchmarks for Australia, Japan, and Hong Kong fell.
- The policy-sensitive two-year Treasury yield, which fell more than 30 basis points on Friday, regained half of its loss at one point Monday to reclaim the 4% level before easing back again. Traders are attempting to predict the Federal Reserve's next move in light of recent financial instability and a weaker-than-expected reading on inflation expectations.
