US Markets U.S. stock futures edged higher overnight as fears of a banking crisis fears eased after a turbulent session. - Analysts are unsure about the health of Credit Suisse after the Saudi National Bank, its largest investor, said it was unable to provide additional funding to the bank if it were to face a short-term liquidity issue.
- Credit Suisse later announced plans to borrow up to $54B from the Swiss National Bank, assuaging investor concerns.
- Investors are awaiting the U.S. jobless claims report due later today, as well as earnings reports from Dollar General, Jabil, and FedEx.
- The current 10 Year U.S. Treasury yield is set at 3.48660%
Dow Jones | 31,874.57 | -0.87% | S&P 500 | 3,891.93 | -0.70% | Nasdaq | 11,434.05 | 0.05% | Russell 2000 | 1,745.94 | -1.74% | *Stock Market data as of the last closing bell. Data received directly from the reference indexes through ICE Data Services. Do you not understand any of these figures? Check out our explainer. | |
Canadian Markets RBC economists predict that Canada will suffer a "mild" recession in Q2 and Q3 of 2023. - The prediction is in spite of the economy remaining strong as interest rates continue to rise.
- Economists predict higher interest rates will negatively impact household purchasing power and the housing market.
- Oil-producing provinces are predicted to fare better due to robust commodity prices, and Atlantic Canada is set to benefit from increased population growth and residential investment.
*Canadian stock prices are as of the last close. Data received directly from the references indexes through ICE Data Services | |
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European Markets European stock markets suffered heavy losses on Wednesday. - Credit Suisse shares plummeted 24% after Saudi National Bank, its biggest lender, said it would not provide further financial assistance. This led to a broader sell-off in the banking sector, with banks such as BNP Paribas, Societe Generale, Commerzbank, and Deutsche Bank all falling.
- The Stoxx 600 index closed 3% lower, will all sectors ending in the red.
- Banking stocks led losses after falling 7%.
- Financial services lost 5.9%, oil and gas stocks dropped 6.6%, and mining fell 5.8%.
Euro STOXX 50 | 4,034.92 | -3.46% | UK (FTSE 100) | 7,344.45 | -3.83% | Germany (DAX) | 14,735.26 | -3.27% | France (CAC 40) | 6,885.71 | -3.58% | *European stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services. | |
Asian Markets Stocks in Asia fell on Thursday morning amid uncertainty regarding Credit Suisse. - Tech and banking stocks continued falling on Wednesday, dragging down markets.
- New Zealand's GDP shrank 0.6% in Q4 2022. The country's economy grew 2.2% in 2022, down from 6% in 2021.
- The downturn was caused mainly by the manufacturing sector, which fell 1.9% from Q3 to Q4 2022.
S&P Asia 50 | 4,436.28 | -0.10% | Japan (Nikkei 225) | 26,892.47 | -1.24% | South Korea (KOSPI) | 2,373.16 | -0.28% | China (Hang Seng) | 19,245.59 | -1.51% | India (SENSEX) | 57,332.43 | -0.39% | *Asian stock prices are as of 7 am ET. Data received directly from the reference indexes through ICE Data Services. | |
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Commodities Oil prices fell on Wednesday as investors fear that a potential banking crisis could dampen global demand. - Brent crude lost 4% and U.S. West Texas Intermediate fell 5%. Both are at their 2023 lows.
- Oil markets are expected to finish H1 2023 in a surplus as supply remains higher than demand despite China reopening its economy late last year.
- Concerns are increasing regarding the strength of the U.S. economy. Goldman Sachs recently cut its 2023 U.S. GDP forecast, from 1.5% to 1.2%, because it predicts that small and medium-sized banks will lend less money to preserve liquidity.
Oil (NYSEARCA:OIL) | 26.14 | -4.53% | Gold (NYSEARCA:GLD) | 178.21 | 0.77% | Silver (NYSEARCA:SLV) | 20.00 | 0.55% | Corn (NYSEARCA:CORN) | 24.58 | -0.12% | Lumber (NASDAQ:WOOD) | 69.79 | -1.99% | *Commodity prices are as of 7 am ET. Data from MarketWatch. To understand why investors track the prices of these commodities, click here. | |
Currencies Safe haven currencies rose on Tuesday in response to the turmoil in the banking industry. - The Japanese Yen, Swiss Franc, and U.S. Dollar all benefited from the volatility.
- Forecasts for the Federal Reserve's interest rate decision next week differ. It is unclear if policymakers will raise rates, and if so by how much, because they need to take into account multiple factors — including inflationary concerns, economic health, and the current state of the U.S. banking system — before making a decision.
- The Australian and New Zealand dollars were both down more than 1% as they are seen as higher-risk currencies.
Currency Exchange Rates UK(GBP) | £0.83 | 0.61% | Europe (EURO) | €0.94 | 1.21% | Canada (Canadian Dollar) | $1.37 | 0.42% | Japan (Yen) | ¥132.63 | -1.32% | *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here. | |
Cryptocurrency Bitcoin fell as some investors are concerned that banks may face a liquidity crisis. - $300M in cryptocurrency futures were liquidated in just 24 hours on Wednesday.
- Chinese businessman Guo Wengui has been arrested and charged with fraud for his alleged role in fraud schemes, including a $500M crypto scam.
- Brian Brooks, the former acting head of the Office of the Comptroller of Currency, said he believes that U.S. regulators are purposely forcing the closure of banks like Signature Bank, Silvergate Bank, and Silicon Valley Bank due to their links with cryptocurrency businesses.
- He claims this a continuation of an Obama-era initiative by which federal officials cracked down on cryptocurrency companies, saying that they could be involved in fraud and money laundering.
Bitcoin | $24,373.20 | -1.57% | Ethereum | $1,650.86 | -0.22% | Litecoin | $78.26 | 1.94% | Bitcoin Cash | $123.68 | -6.04% | *Exchange rates as of 7 am ET. Data from Morningstar Financial Research. To understand why we track these currencies and the differences between them, click here. | |
| | | | Editor | Eduardo Garcia is a writer and editor based in New York. He is the author of "Things You Can Do," an illustrated book about climate action. Bylines in The New York Times, The Guardian, Slate, Scientific American, and others. In one of his previous lives, Eduardo worked as a Reuters correspondent in Latin America for nearly a decade. | |
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