Daily summary: Bulls are dominating on Wall Street

7:06 PM March 16, 2023
  • The ECB decided to hike by 50 basis points, in line with earlier assurances. The bank made the decision, even despite problems in the banking sector
  • The SNB was expected to provide support for the troubled Credit Suisse bank, which was expected to reassure investors in Europe and the US;
  • The ECB was expected to decide on the hike after the SNB's decision in providing liquidity for Credit Suisse
  • The ECB lowered its inflation projections and was not as hawkish as at its December and January meetings
  • EURUSD rebounded from yesterday's low near the 1.0520 level, but there were problems with further increases near the 1.0600 level
  • The ECB's not-so-hawkish approach and news from the European and US banking sectors led to a recovery in the stock market. The US100 tested the area around 12650, with the US100 gaining more than 3%, while the US500 gained more than 2%. 
  • WTI is rebounding today after falling below $66 per barrel yesterday. Goldman Sachs raises forecasts for China's economy, bolstering demand expectations;
  • Janet Yellen assured that the US banking system is stable and all Americans will have access to their deposits at all times;
  • US claims were lower than expected (192 k vs 205 k expected and 211 k previously). US housing data reading was also above expectations;
  • Despite the data dollar index USDIDX remained at a relatively low level, around 104 points. US dollar is weaker because of systemic risks and growing expectations around a weakening of the Fed hawkish policy;
  • First Republic Bank (FRC.US) fell sharply at the opening today due to reports of a $20-25 billion hole in its balance sheet. However, the bank is expected to be "recapitalized" by larger entities. Deposits are expected to reach as much as $30 billion and to be made by banks such as Morgan Stanley and JP Morgan;
  • Alphabet (GOOGL.US) shares rose nearly 5% thanks to reports of AI implementation in Google Workspace applications.Gains were made by major Wall Street banks like JP Morgan, Bank of America, Citigroup and US Bancorp;
  • Bitcoin is still below $25,000 and failed to follow the euphoric gains of the Nasdaq. The cryptocurrencies Binancecoin and Graph gained the most today.

US500 on D1 interval is trying to break 4000 pt. resistance zone which may open the way to 4050 pt. where we can see also 23,6 Fibonacci retracement of upward wave started in September 2022. 39340 pt zone is still very important support, at SMA200 levels (red line). Source: xStation5


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