Global bank rout drags stocks lower after respite following Credit Suisse deal - 20.3.2023

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Todays’ Market Summary

The Dollar weakening is intact
US stocks indexes futures are down currently
Brent is extending losses currently.
Gold prices are extending gains presently

Top daily news

Global equity indexes are in red currently after initial relief over UBS Group’s state-backed purchase of Credit Suisse Group for $3.23 billion (3 billion Swiss francs). Under the deal Credit Suisse’s additional tier-1 bonds - or AT1 bonds - with a notional value of $17 billion will be valued at zero, which renders shareholders better protected than the holders of the debt. Wall Street resumed the selloff on Friday. Apple’s shares lost 0.55% outperforming market, Meta shares plunged 4.55% on Friday while President Donald Trump posted on Facebook for the first time since January 6, 2021.

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Forex news

Currency Pair	Change
EUR/USD	-0.02%
GBP/USD	-0.1%
USD/JPY	-0.9%
AUD/USD	-0.3%

The Dollar weakening is intact currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.4% Friday while the University of Michigan survey showed US consumer sentiment fell for the first time in four months even as inflation expectations improved.

Both EUR/USD and GBP/USD accelerated their climbing on Friday. Both Pound and euro are lower against the Dollar currently. USD/JPY resumed retreating while AUD/USD continued advancing Friday with the yen higher against the Greenback currently and the Australian dollar lower.

Stock Market news

Indices	Change
Dow Jones	-1.2%
Nikkei 225 Index	-0.9%
Hang Seng	-1.5%
ASX 200	-0.7%

US stocks indexes futures are down currently after closing solidly lower on Friday despite a $30 billion rescue package unveiled on Thursday for the First Republic Bank which closed down 33%. The three main US stock benchmarks recorded daily losses in the range from 0.7% to 1.2% on Friday with bank stocks leading losses.

European stock indexes futures are lower currently after stocks closed lower on Friday with bank shares leading losses despite announcements that Credit Suisse would receive financial help to prevent a crisis in the banking sector. Asian indexes futures are in red today as major central banks implemented a series of coordinated currency swaps to ensure banks have the dollars needed to operate. Hong Kong’s Hang Seng index is leading losses.

Commodity Market news

Commodities	Change
#C-BRENT	-2.1%
OIL	-2.2%

Brent is extending losses currently. Prices ended lower on Friday despite Saudi Arabia and Russia reaffirming on Thursday their commitment to OPEC+'s decision last October to cut production targets by two million barrels per day until the end of 2023. West Texas Intermediate (WTI) futures settled down 2.4% and is lower currently. Brent lost 2.3% to $72.97. Both benchmarks ended more than 12% lower on the week.