Good Morning Traders and a warm welcome back after the weekend! It is Monday the 20th of March as we look towards a quiet day in the European markets.
Here are some things to look out for ahead of today's session.
Sentiment
An unprecedented government-brokered arrangement between UBS and Credit Suisse was made in an effort to stem the growth of a confidence crisis that had begun on the world's financial markets.
Financial companies listed in Hong Kong saw falls led by HSBC as concerns over Credit Suisse's exposure to risky bonds fueled a stronger risk-off mood. The British bank's shares dropped as much as 6.6%, the most in over six months, and the company's ATI bond dropped by more than 5 cents. Several Asian banks' additional tier 1 bonds experienced a record-breaking decline on Monday morning after a Swiss regulator said that Credit Suisse's $17 billion worth of such ATls will be cancelled.
A coordinated initiative to increase liquidity in US currency swap agreements was revealed by the Federal Reserve and five other central banks on Sunday. This was the latest attempt by policymakers to reduce the mounting strains on the global financial system.
The Bank of Japan signalled a cautious approach towards ending heavy easing before hitting its inflation target, which helped calm market concerns about a significant change in monetary policy at the beginning of the tenure of new governor Kazuo Ueda.
Docket
6:00 AM ET
Eurozone Trade Balance
Prior -18B
Good Luck Today Traders!
