Stocks reel on collision between rate bets and US banks

Stocks reel on collision between rate bets and US banks

The world stock exchanges were trading in a tight range on Friday, still on track for a weekly loss, as Investors were balancing bets on a pause in interest rate hikes with the latest drop in shares of US regional banks.

MSCI’s global stock index rose 0.1% after a four-day losing streak, while the pan-European STOXX 600 gained 0.2%.

The atmosphere in Wall Street looked more rosy, with S&P 500 futures up 0.5% after results of Manzana Inc. better than expected.

Technology Index Contracts nasdaq 100 was up 0.6%, though analysts warned that all this could change if US jobs data is better than expected, making it difficult for the Federal Reserve to calm banking sector concerns as it battles inflation still high.

Thursday, PacWest Bancorp announced that it was studying its sale, which aggravated the fall in the values ​​of the US regional bank. Shares in this troubled sector have fallen 11.5% this week, following the bankruptcy of the First Republic Bank over the weekend, which renewed fears of a financial sector crisis.

“There will be concerns about credit quality and its impact on the banking system,” said UBS’s Gerry Fowler.

In government bond markets, US Treasuries pared some of their gains after performing well all week.

The yield on two-year notes, which tracks rate expectations, rose 10 basis points to 3.823%, and that on benchmark 10-year paper, which sets the tone for borrowing costs and pricing. of assets worldwide, rose 5 basis points to 3.4%.

In the foreign exchange market, the dollar fell 0.1%, heading for its seventh weekly fall in the last eight weeks.

Sterling was up 0.3% at $1.261, while the euro was up 0.1% at $1.1027.

Spot gold was trading at $2,037.58 an ounce, not far from its all-time high of $2,072.49.

Regarding oil, prices climbed more than 2 dollars per barrel in the session, after a series of sharp falls.

By Naomi Rovnick, from Reuters agency

Source: Ambito

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