News

Published: Mar 21, 2023
Updated: Mar 21, 2023

Global Markets Remain Fragile Despite Banking Sector Rescue; UBS Takes Over Credit Suisse for $3.3 Billion

Markets remained under pressure on Friday despite a massive rescue plan for the banking sector. UBS announced its takeover of Credit Suisse for $3.3 billion, with AT1 bondholders set to lose their entire investment. The sentiment in the markets remained fragile, resulting in global equities being under pressure.

Equity Indices Plunge Despite Rescue Plan

The Dow Jones Industrial Average was down by 384 points, or 1.19%, while the S&P500, Nasdaq, and Russel2K fell by 1.10%, 0.74%, and 2.56%, respectively. Over the last two weeks, the S&P Banking index fell by 4.6%, and the KBW Regional Banking index plunged by 5.4%.

Gold Prices Rise; Brent Oil Prices Fall

Gold prices jumped to $1994, the largest one-week rally since 2020, while Brent oil prices hit 15-month lows, falling to $73 (-2.7%).

US Consumer Sentiment Falls for the First Time in Four Months

The US consumer sentiment for March fell for the first time in four months. Meanwhile, the MSCI world equity index, which tracks shares in 49 nations, fell by 0.55%.

Upcoming Market Events

Next week, several significant market events are lined up. These include ECB President Christine Lagarde's speech on Monday, US home sales on Tuesday, FOMC rate decision on Wednesday, BoE's latest policy rate decision, US new home sales, and initial jobless claims on Thursday, and US PMI on Friday.