Over the weekend more steps were taken in an attempt to shore up confidence in the global banking system. UBS agreed to purchase troubled Credit Suisse for $3.2B. In addition, five central banks, the Fed, the Bank of Canada, the European Central Bank, the Bank of England and the Swiss National Bank announced a coordinated plan to provide liquidity as needed.
When trading opened last night, index futures initially declined about 0.5%, but investor confidence has been improving into the morning. US index futures are currently trading flat to down 0.2%, while in Europe, the Dax is up 0.6% and the FTSE is up 0.3%. The Euro and Pound are both up about 0.4%, while the Loonie is up 0.2%.
Capital continues to move into traditional defensive havens. Gold is up 0.75% and approaching the $2,000/oz round number barrier, and the Japanese Yen is up 0.5%. Commodity action is mixed with WTI Crude Oil down 1.25% and Copper up 1.0%.
The main event economic event this week is Wednesday’s Fed interest rate decision, statement, member forecasts, and press conference. Investors are still expecting a 0.25% rate increase as Chair Powell and the FOMC try to walk a fine line between providing support to the banking system, fighting inflation, and avoiding a panic.
New Video: SIA Wealth March 2023 Market Outlook Webinar Replay
A replay of the SIA Wealth Market Outlook Webinar with Colin Cieszynski – Chief Market Strategist, discussing recent trends in world markets is now available.
YouTube Version: https://youtu.be/Ay34e02is3o