Within the framework of the financial crisis in the United States, the Dow Jones rises in the expectation of a pause in the rise in rates, although the Nasdaq falls and the banking sector has mixed dynamics.
After five days of consecutive falls, this Monday, Wall Street is operating in a positive trend and its main index, the Industrial Dow Jones rises 221.37 points, or 0.69%, to 32,083.35 units, while the S&P 500 gains 11.27 points, or 0.29%, to 3,927.91 units. He Nasdaq Composite It was down 39.59 points, or 0.34%, at 11,590.93.
The rises are driven by a emergency liquidity operation launched by central banks of Europe and the United States (FED), but there are still tensions in the banking sector as a result of the financial crisis that unleashed the fall of Silicon Valley Bank.
The state-backed bailout of Credit Suisse appears to have helped allay some fears of a further banking crisis, as investors considered the likelihood of the United States pausing rate hikes this week to ensure financial stability, as that the banking problems triggered by the bankruptcy of Silicon Valley Bank and SignatureBank they threaten to snowball if he maintains an aggressive policy.
The Credit Suisse bailout
Weekend, UBS agreed to buy Credit Suisse for $3.23 billion, in a merger engineered by the Swiss authorities to avoid further turbulence in the global banking market. And, in this context, the shares of that bank listed on Wall Street plummeted 48.5% and reached a new all-time low, while those of UBS reversed the falls prior to the start of market operations and rose 7 .8%
Meanwhile, large US banks such as JPMorgan Chase & Co, Citigroup and Morgan Stanley earn between 0.6% and 1.6% and the regional bank First Republic Bank It plunged 8.9% after a downgrade by S&P Global and a report on increased fundraising that stoked concerns about the bank’s liquidity despite a $30bn bailout last week. pass.
PacWest Bancorp scaled 21% after the bank said deposit outflows had leveled off, while New York Community Bancorp it also spikes 33% after the bank unit agreed to buy Signature Bank deposits and loans.
He S&P Banking index and the KBW Regional Bankingwhich on Friday registered their biggest drop in two weeks since March 2020, add 1.4% and 3.2%, respectively.
Source: Ambito
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