Credit Suisse (Credit Suisse) turmoil once again sparked concerns about the banking crisis, and major US stock indexes opened lower on Wednesday (15th). On the other hand, U.S. economic data highlighted cooling inflation, raising hopes that the Federal Reserve will adopt less aggressive monetary policy next week.
before the deadline,Dow Jones Industrial Averagefell more than 460 points or nearly 1.5%,Nasdaq Composite Indexfell more than 100 points or nearly 1%,S&P 500 Indexfell nearly 1.4%,Philadelphia SemiconductorThe index fell more than 1%.
The turmoil at Credit Suisse weighed on European bank stocks and also weighed on U.S. stock market sentiment. Investors were on edge following the collapse of several regional banks last week, while risk aversion pushed U.S. Treasuries higher.
Before the U.S. stock market, Citizens Financial Group (CFG-US) and US Bancorp (USB-US) both fell more than 3%, dragging down Wells Fargo (WFC-US),Bank of America(BAC-US) and Citigroup (C-US) and other large bank stocks.
U.S. 10-Year Treasury Bond YieldThe decline extended after data showed U.S. retail sales growth unexpectedly slowed in February, providing further evidence that inflation may be nearing a peak. In addition, US indexes pared gains for the first time in 5 days.
The data released by the US Department of Labor on Wednesday showed that the growth rate of the US producer price index (PPI) unexpectedly fell sharply in February, which encouraged market investor sentiment. U.S. PPI fell by 0.1% in February, lower than the expected 0.3%; PPI increased by 4.6% in February, far below market expectations of 5.4%, and also a sharp drop from the revised 5.7%, the lowest since March 2021 speed up.
In energy, West Texas Intermediate crude futures fell below $70 a barrel for the first time since late 2021, as investors remained on edge after last week’s bank collapse. Crude oil futures for April delivery fell 2.99% to $69.20 a barrel by the time of writing, the lowest since December 20, 2021.
As of 21:00 on Wednesday (15th) Taipei time:
Focus stocks:
apple (AAPL-US) fell 0.79% to $151.39 per share in early trade
Some foreign media reports pointed out that Apple delayed the payment of some departmental bonuses to expand cost reduction and streamline business. At present, Apple mainly reduces the bonus payment rate of some employees, and at the same time freezes more personnel recruitment, and does not make up for employees after they leave. Apple’s practice is to issue bonus and promotion notices once or twice a year, usually in April and October, but according to Apple’s latest plan, there may be no bonuses and promotions in April, and all departments will switch to annual plans. Implemented in October.
Meta Platforms(META-US) rose 0.06 percent to $194.15 a share in early trade
Facebook’s parent company Meta recently announced that it will lay off another 10,000 people, making it the first technology giant to announce a second round of large-scale layoffs. Bank of America analyst Justin Post raised the bank’s target price on Meta from $220 to $230 per share and maintained a “buy” rating on the stock.
Migin (BAC-US) fell 2.69 percent to $27.98 a share in early trade
According to foreign media reports, Bank of America’s deposits have surged by more than 15 billion US dollars in the past few days, because Silicon Valley Bank (SVB) and Singnature Bank have been shut down and taken over by the US authorities in recent days, making many depositors worry about being placed in small and medium-sized regional banks. deposits, and triggered the largest deposit flow in the United States in more than 10 years. It is reported that many customers are eager to transfer their deposits to large US banks these days.
Today’s key economic data:
- The U.S. February PPI increased by 4.6% year-on-year, expected to be 5.4%, and the previous value was revised to 5.7%
- U.S. February PPI monthly increase – 0.1%, expected 0.3%, revised previous value 0.3%
- The core PPI in the United States increased by 4.4% in February, expected to be 5.2%, and the previous value was revised to 5.0%
- The core PPI in the United States increased by 0% in February, expected to be 0.4%, and the previous value was revised to 0.1%
- U.S. retail sales in February increased by 5.39% year-on-year, the previous value was revised to 7.68%
- U.S. February retail sales growth rate – 0.4%, expected – 0.3%, revised previous value 2.3%
- U.S. February core retail sales growth rate – 0.1%, expected – 0.1%, revised previous value 2.4%
- New York Fed manufacturing index reported -24.6, expected -8, previous value -5.8
Wall Street Analysis:
Renewed unease in the banking sector is complicating policymakers’ task of ensuring financial system stability while facing inflationary pressures. Frederik Ducrozet, head of macroeconomic research at Pictet Wealth Management, said central banks are likely to be more cautious in monitoring the season of tightening credit conditions, however one key difference between this and previous banking crises is that the macro backdrop is more resilient, including continued Inflationary pressures, which would lead to a difficult trade-off between inflation and financial stability risks.
Two-year yields fell, suggesting the market pendulum had swung back to expectations the Fed would stop raising interest rates as financial conditions tightened due to tighter lending standards for U.S. banks. Torsten Slok, chief economist at Apollo Global Management, said the Fed will not raise interest rates next week given the key role played by regional banks in the U.S. credit expansion, and may have seen both short-term and long-term interest rates rise during this cycle. peaked.
