- Bond prices increased as investors flocked to the safest investments while evaluating the government's efforts to maintain stability in the banking industry. As Credit Suisse was sold to UBS over the weekend through government-brokered transactions, US equities futures and European stocks reversed earlier losses.
- Although big lenders JPMorgan, Bank of America, Wells Fargo, and Citigroup moderated US premarket drops, contracts on the S&P 500 remained stable. Futures for the Nasdaq 100 moved higher. The Stoxx Europe 600 index increased a little bit, with banks and financial services continuing to experience the worst declines. When Credit Suisse shares dropped 60%, UBS shares dropped as much as 16%. An indicator of Asian stocks decreased by more than 1%.
- After the issues at Credit Suisse and the demise of Silicon Valley Bank led to larger worries about financial stability, policymakers are scrambling to restore confidence. To reduce pressure on the global financial system, the Federal Reserve and five other central banks announced a concerted effort to increase liquidity in US dollar swap agreements. As the Fed prepares to announce its next rate decision on Wednesday, traders are also analysing the potential effects of recent developments on the trajectory of policy tightening.
- ECB's Kazaks: The ECB isn’t done on rate hikes if the baseline holds up.
- Goldman Sachs lowers the level of Euro Area real GDP by 0.3% over the next year, seeing 2023 growth at 0.7%.
- BoE 25 BPS cut fully priced by year-end the first time in 4 weeks.
- Goldman Sachs: We expect the Fed to pause at its March meeting this week because of stress in the banking system.
