- The first session in Europe this week ended with declines in the main stock indices. The DAX lost more than 3%, the CAC 40 lost 2.9% and the FTSE 100 lost 2.58%. Europe failed to unwind the declines as was the case on Wall Street.
- The markets in the USA fared much better. The Nasdaq gained nearly 1.3% and the S&P 500 recorded a 0.7% rally. The turnaround is a direct result of the decision by US regulators to guarantee deposit withdrawals and provide liquidity via loans against Treasury securities to banks that have collapsed over the past few days, amid massive deposit outflows and a lack of liquidity.
- In the foreign exchange market, we have mainly seen strength in the British pound and the New Zealand dollar. The relative strength of the antipodes is due to bullish momentum in the commodities market, which gained today. The dollar is losing ground, which can be explained by market expectations of a faster end to interest rate rises. The EURUSD has returned with momentum above 1.07 and the gains are also continuing on GBPUSD, with the pound approaching 1.2200.
- Tomorrow we will see key inflation (CPI) data from the US - 12.30 am GMT, in the event of an above expectations reading (higher inflation) the Fed could be set against the wall, as it will have no argument for no interest rate hike
- The NATGAS exchange rate moved dynamically upwards which may be related to a rebound in the dollar, which has started to weaken against the major currencies. In addition, attention should be paid to the latest weather forecasts for the US, which assume the likelihood of lower temperatures.
- Credit Suisse (CSGN.CH) shares are losing more than 11% during today's session on a wave of panic surrounding the financial sector. The gloomy sentiment is pulling the bank's CDS (Credit Default Swaps) to historic highs.
- Bitcoin gains more than 10% amid improved market sentiment and returns above the $24,000 level.
