- Prior advances in US equities futures were erased, and banks led drops in European stocks as traders' fears about the sector's health spread before the weekend. Bond prices and the dollar increased as a risk-averse mindset spread throughout the markets.
- As a measure of banks erased the last of its gains from the start of the week, the Stoxx Europe 600 Index fell for a second day. The 15% decline in Deutsche Bank was the biggest since March 2020. After the underlying gauge's Thursday approach to the beginning of a bull market, contracts for the S&P 500 fell by 0.7%, while those for the Nasdaq 100 fell by 0.4%.
- Traders continued to be on the alert for issues that have arisen in the banking industry as a result of the Federal Reserve's quick rate hike cycle. Even after Treasury Secretary Janet Yellen assured Congress she was ready to take more measures to protect depositors if necessary, American lenders fell on Thursday. A gauge of the largest US financial institutions dropped to its lowest level since November 2020.
- Treasury yields decreased as a result of the haven buying, with the two-year yield falling by 26 basis points and the 10-year yields on German and UK notes falling by more than 15 points.
- BoE Bailey: If firms continue to hike prices, interest rates will increase - BBC
- Traders no longer fully price another 25-basis-point BoE rate hike.
- European markets continued decline, with banks falling more than 4%. Deutsche Bank shares are down more than 10% as credit-default swaps rise amid broader fears about the banking sector's health.
- Money markets fully price a 25 BPS Fed rate cut by June.
