๐บ๐ธ The U.S. stock market opened mixed. Regulators and investors all hope the rescue of failed bank Credit Suisse by UBS Group over the weekend would stem the slide in stocks triggered by the three banks' collapse.
The S&P 500 and $DJIA(.DJI)$
The Fed and five major central banks had announced a coordinated effort to improve liquidity by moving U.S. dollars among themselves each day , starting Monday, instead of once a week. The central banks thรชn lend those dollars out to financial institutions, in an effort to backstop other countries' funding needs should strains emerge in global markets.
The global stock markets were all in red today. Regulators globally worried that the collapse of CreditSuisse could reverberate among large banks in a number of countries.
In the meantime, First Republic has become the latest pressure point as bank in trouble, although the bank's spokesman said on Sunday it "is well-positioned to managed short-term deposit activity."
Regulators are relatively quiet over this weekend. They are worried that after two weeks of intervention in the banking sector, too much more activity, too soon, would signal to skittish markets that the regulatory work done so far was insufficient. Further action might also discourage potential suitors for the struggling bank.
The market's reaction to developments at First Republic and Credit Suisse could influence how the Federal Reserve approaches its rate-setting meeting this week, where officials face a finely balanced decision over whether to raise interest rates by a quarter-percentage point or to forgo an increase altogether.
How do you trade under the present market conditions? I would like to invite you to share your additional tips in the comment section below.
Please also tap "Like" for this post. Thank you.
You are welcome to tap Repost / Share this post.
This article is for reference only. Do DYODD beforemaking any trade.
Good luck.๐
@MillionaireTiger @TigerStars @VideoLounge @Tiger_chat @Tiger_Champs
Comments