The emergency is not over yet, as demonstrated by the new collapse in California of FirstRepublic -47%. And Michael Wilson, an authoritative strategist at Morgan Stanley, writes that it has started the last phase of the “Bear market”, with new sudden and unpredictable thuds. But, at least for now, the worst seems to be over.
The opening of the European Stock Exchanges
European stock exchanges open higher, with the EuroStoxx 50 index marking +0,4%. Markets have digested the most critical aspects of the UBS/Credit Suisse deal, including the bondholder sacrifice. Thanks to the ECB, it has ensured that it will never follow the Swiss example.
Dow Jones: best session since January
The positive opening also rests on the brilliant conclusion of the US session. The sectoral index of banks rose by a good 1 percent. The Dow Jones, the blue chip index, recorded its best session since January 1,2: +XNUMX%. L'S&P500 gained 0,9%. Nasdaq +0,4%. Overseas futures are positive, but, above all, the vix, the fear index, drops below 25 to normal levels.
Positive closure for Asian stock exchanges
Finally, the opening of the Asian lists on the second day after the deal, the one considered to be the most delicate, gives comfort. Stock markets closed positive: Hong Kong's Hang Seng +0,8%. Both Hsnc and Standard Chartered, the banking groups under observation due to the presence of significant portions of AT1 bonds, recovered.
Tokyo closed for holidays, the CSI 300 of the Shanghai and Shenzhen lists are up +0,5%. Kospi of Seoul +0,3%. And Mumbai's BSE Sensex +0,6%.
Use, ahead of all deposit insurance
The sectoral index of banks rose by more than one per cent but continued to fall by First Republic Bank -47%. The bank based in Francisco is at the moment the most delicate area, therefore the most supervised, of the entire US credit system. If only for reasons of territorial contiguity with the failed Silicon Valley Bank. The Fed supervises and a consortium of eleven banks, according to what the Wall Street Journal, are preparing a new emergency intervention.
The big jobs for the rescue of First National, unofficially entrusted to JP Morgan's number one Jamie Dimon cross paths with the start of work on the fomc, the Fed's monetary committee. Under the pressure of the Democrats, the decision to extend the guarantee on bank deposits over $250 for all account holders. A White House spokesman, questioned on the hypothesis, said that all the tools available will be used to support local banks.
It will not be easy for the Fed to reconcile liquidity injections to avert the crisis with the financial squeeze that until a few days ago seemed obvious. Half of observers expect the central bank to limit itself to a quarter-point rate hike. But the other half thinks that the cost of money remains unchanged.
Bund yields fall, utilities fly
The new forecasts had a strong impact on the bond market. The Treasury Notes at ten years it is around 3,50% yield. Yesterday a tension-free day for the European charter, with the Waist ten-year term at 2,11%. Retrieve the btp, treated at 3,87%, the spread to 181 points.
- The drop in the cost of money has given new life to utilities. Thanks to the recovery of the banks Business Square +1,6% returns to the top of the European stock exchanges.
- L'EUR regained positions on the dollar, the cross is around 1,071.
- THEgold trades a thread under $2.000 an ounce.
- Weak the Petroleum: wti at 67 dollars a barrel.
Auto, Stellantis sales increase
Le car registrationsi in Europe are continuing 2023 with a positive trend, recording the seventh consecutive month of increase in February. According to data released by That, last month registrations in the EU, EFTA countries and Great Britain rose on an annual basis by +12,2% to 902.775 vehicles. In particular, the Spanish market grew by 19,2% and that Italian by 17,4%. Further back, France and Germany recorded gains of 9,4% and 2,8% respectively. The group stellantis saw February reverse the trend positively with sales up 2% to 167.097 vehicles with market share at 18,5% from 20,4% a year earlier.
