WEEKLY SUMMARY: Bonds, Bitcoin & Bullion soared as Banks tumbled
US stocks closed mixed for the week, reflecting the crosscurrents of stresses in the banking sector, worries that a steeper slowdown in the economy would follow, and hopes that the Fed would now be forced to pause its rate-hiking cycle. Sector returns within the S&P 500 Index varied widely: mega-cap tech stocks recorded strong gains while financials and energy shares suffered significant losses. Worries that the failure of SVB would set off a wave of new collapses eased over the weekend, as the FDIC and the Treasury Department announced on Sunday, March 12, that all SVB depositors would have full access to funds on Monday morning. Hopes that the Fed might also adjust its monetary policy in response to events seemed to drive a rally on Tuesday. By the end of the week, futures markets were pricing in zero likelihood of a 50-basis-point hike by the Fed in March compared with a 40% chance of one the week before. The US 10-year yield touched an intraday low of 3.37% on Thursday while Investment-grade credit spreads widened to a four-month high. Shares in Europe tumbled as the pan-European STOXX Europe 600 Index ended the week 3.8% lower. News that Credit Suisse (CS) was also experiencing problems sent markets sharply lower again. ECB sticks to half-point rate hike despite stress on European banks as they said that inflation is expected to stay above target. Oil tumbled while Gold and cryptocurrencies soared as Bitcoin recorded its best week since January 2021.
Disclaimer
This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document.
Related Articles
The Dow Jones and the S&P 500 Index moved to record highs, as investors appeared to celebrate new stimulus measures in China. Chemicals and materials stocks were particularly strong. Copper prices also increased. Tech stocks outperformed as well, helped by reports of a possible takeover of Intel and news that NVIDIA’s CEO had ceased sales of his own shares in the company. In addition, chipmaker Micron Technology surged and seemed to provide a general tailwind for the sector following its upbeat outlook for AI demand. Some benign inflation data helped spur an early rally Friday; the Fed’s preferred inflation gauge, the core (less food and energy) personal consumer expenditures (PCE) price index, rose only 0.1% in August, a tick below expectations.