Bank Stocks What To Expect On 20 Mar 2023 When Mkt Opens ?
By now, everyone would’ve heard about the “match made in heaven”, the deal of the century.
In the face of national interest, the national service (by UBS) to carry out is the “right honourable” thing to do.
The opening statement by $UBS Group AG(UBS)$ Chairman Colm Kelleher has set the tone for the acquisition - “It's a historic day in Switzerland, and a day frankly, we hoped, would not come".
Make no mistake of the displeasure that is plain for all to see.
WorldWide Stock Exchanges’ Bank Stocks Reactions So Far (5:00pm singapore time) ?
World stock exchanges - Bank stocks movement on 20 Mar 2023
Things are not looking good for all stock exchanges’ bank stocks.
Swiss Exchange - 1 hour into trading
Overall, bank stocks across stock exchanges worldwide are still jittery, period ! It will not be a stretch to imagine how US stocks (especially bank stocks) will behave when US market opens today (20 Mar 2023).
(1) US Pre-market Indicators for 20 Mar 2023 (Mon).
The pre-market indicators are all in “red”.
It continues to evolve based on latest news and rumours from the grounds.
Up until now, the indicators are telling us that the US market is indifferent to news of UBS takeover of Credit Suisse.
18 Mar 2023 (Sat) post
20 Mar 2023 (Mon) post
(2) Rating Agencies Downgraded First Republic Bank
On 18 Mar 2023 (Sat), rating agency Moody’s Investors Services downgraded $First Republic Bank(FRC)$ to junk status.
Moody explained that “it reflects “he deterioration in the bank’s financial profile & the significant challenges First Republic Bank faces over the medium term“.
On 20 Mar 2023 (Mon), rating agency S&P Global downgraded First Republic (for the 2nd time in 4 days) by 3 notches; from “BB+” to “B+”. Earlier downgrade saw bank’s rating fell from “A-” to “BB+”.
The market is still reeling from the banking stocks saga.
Cannot understand why these agencies are rocking the boat further with the downgrade exercise now ? Couldn’t the re-rating take place late ?
(3) Will It Be A Case Of Too Little Too Late ?
Will the joint echo by US Federal Reserves’s Mr Powell and US Treasury Dept Ms Yellen be able to bring the much needed calm to the US market as it braces for a brand new week of trading ?
This will be a “do or die” week as the mounting fear threatens to bring all stocks to its knee; especially Banking stocks.
The Dow Jones US Bank Index’s pre-market indicator is registering -4.67% fall while this post is being composed.
Index’s last week performance have fallen by -6.20%.
Will it continue to languish this week ?
Do you think US market will fall across the board today ?
Do you think US Bank stocks will be particularly hit hard today and this week ?
Do you think you will shore up some bank stocks if stock price has a “hard landing” ?
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