On Wednesday morning, the first indications from the US markets showed Dow Jones futures down slightly by 0.1% concerning fair value, those of the S&P 500 down slightly, and those of the Nasdaq 100 unchanged. The 10-year Treasury yield increased four basis points to 3.67%, while the 2-year Treasury yield increased nine basis points to 4.31%. Additionally, crude oil futures rallied by 1%.
The US stock market recorded an increase in value thanks to greater investor confidence in the crisis management of the two banks.
On Tuesday afternoon, investor interest in bank stocks had become even more sustained. This marked a change from the previous two sessions of heavy selling as investors became more confident that these banks would not experience the same problems as Silicon Valley and Signature.
Regulators on Sunday announced a plan to support all depositors of these two banks.
However, fears are not entirely allayed that regional banks are at risk of reduced earnings, which could be a significant issue for the value of these banks over the long term. KeyCorp recently sounded a warning about net interest margins before the financial collapse of SVB.
Tuesday’s rally saw increases across all 11 sectors of the S&P 500, including financials. Also, traders have been paying attention to the latest information on the US institution.
In February, the consumer price index rose by 0.4%, as predicted by a Dow Jones survey of economists. The 6% annual increase was also in line with economists’ forecasts. Core CPI, which excludes fluctuations in food and energy prices, rose 0.5% from the previous month, slightly beating economists’ forecasts. The annual increase of 5.5% is in line with forecasts.
Asian stock markets were on the up on Wednesday, March 15, as Wall Street recovered after the collapse of the Californian bank. Nonetheless, China’s macro data yielded mixed results: industrial production fell short of expectations, while purchases rebounded. Manufacturing has already entered a period of deflation beyond what was expected.
In January-February 2023, China’s industrial production increased by 2.4% over the same period a year earlier. This growth rate is higher than the 1.3% increase in December but less than the expected increase of 2.6%. The manufacturing sector has improved after removing the Covid-zero policy, but the mining and utilities sectors have seen a decline in activity.
In 2022, industrial production had grown by 3.6%. By Wednesday morning, the Nikkei index was trading above parity, while Hong Kong’s stock market rose 1.57% and Shanghai’s stock market rose 0.77%. Gold was down 0.36% to a current value of $1,904 an ounce.
Meanwhile, on Wednesday morning, US oil WTI rose by 1.2%, with a current value of 72.19 dollars a barrel. The euro and pound exchange rates were stable at 1.0734 and 1.215, respectively, while the yen recorded a decline of 0.4% to a present value of 134.79. The US 10-year bond yield fell from 3.69% at the start of the Asian session to 3.67%.
The stock market fell early Wednesday on higher expression from the financial sector, notably Credit Suisse, a Swiss bank with significant operations in the US and globally, which fell by more than 15%. As a result, the Dow Jones Industrial Average was down 1.8%, the Nasdaq Composite was down 1.3%, and the S&P 500 was down 1.7%. This drop has caused the S&P 500 year-over-year gain to be less than 0.5%
Price lists for Wednesday, March 15, 2023
DOW Jones -0.87% to 31,874.57
S&P 500 -0.70% to 3,891.93
NASDAQ 100 +0.052% to 11,434.05.