GLOBAL MARKETS DJIA 31861.98 -384.57 -1.19% Nasdaq 11630.51 -86.76 -0.74% S&P 500 3916.64 -43.64 -1.10% FTSE 100 7335.40 -74.63 -1.01% Nikkei Stock 27155.87 -177.92 -0.65% Hang Seng 19223.09 -295.50 -1.51% Kospi 2392.54 -3.15 -0.13% SGX Nifty* 17064.00 -98 -0.57% *March contract USD/JPY 132.09-10 +0.20% Range 132.65 131.67 EUR/USD 1.0682-85 +0.14% Range 1.0697 1.0667 CBOT Wheat May $7.104 per bushel Spot Gold $1,977.17/oz -0.6% Nymex Crude (NY) $66.25 -$2.10 U.S. STOCKS
U.S. stock-index futures opened with modest gains Sunday evening as investors assessed a historic deal to rescue troubled Swiss lender Credit Suisse, the latest maneuver by authorities attempting to prevent a deeper loss of confidence in the global banking system.
U.S. stocks fell on Friday as investors remained on edge about the risk of further bank failures, even after efforts to rescue First Republic Bank and Credit Suisse.
The Dow Jones Industrial Average fell 384.57 points, or 1.2%, to close at 31861.98. The S&P 500 dropped 43.64, or 1.1%, to 3916.64. The technology-heavy Nasdaq Composite declined 86.76, or 0.7%, to 11630.51.
"Sentiment is highly fragile," said Edward Park, chief investment officer at U.K. investment firm Brooks Macdonald. "There's this feeling of 'What's next?' and no one's getting excited too quickly."
Despite Friday's losses, the S&P and the Nasdaq ended the session with weekly gains of 1.4% and 4.4%, respectively, while the Dow turned in a small weekly loss. Some investors are hopeful that the fallout from bank failures will lead the Federal Reserve to pause its recent flurry of interest-rate hikes at its meeting later this week.
ASIAN STOCKS
Japanese stocks were lower in early trade, dragged by falls in auto and shipping stocks, as the yen strengthened and the economic outlook dims amid concerns about the turmoil in the global banking industry. USD/JPY was at 132.35, down from 133.04 as of Friday's Tokyo stock market close. Investors remained focused on any signs of weakness in the banking sector and the Fed's policy decision later this week. The Nikkei Stock Average was down 0.2% at 27286.55.
South Korea's benchmark Kospi was 0.3% higher at 2403.10 in early trade after opening lower. Electronic-vehicle battery stocks were down while cosmetics shares are higher. Investors largely remained cautious ahead of the Fed's policy meeting later this week. USD/KRW was almost flat at 1,302.00. EV battery-material supplier Ecopro BM was down 7.7%, in the second-tier Kosdaq market, after news that prosecutors raided its offices to investigate its executives for their alleged insider stock trading.
Hong Kong's Hang Seng Index was 0.9% lower at 19346.29 in early trade. Focus remains on the outcome of the March FOMC meeting later this week, said UOB analysts. Volatility in Asian markets could be set to continue this week amid the uncertainty surrounding global banks and the U.S. central bank's interest-rate decision, UOB added. Declines were seen across sectors on the HSI.
China stocks were mixed in morning trade, extending a broadly range-bound trading pattern marked in recent sessions. The benchmark Shanghai Composite Index was up 0.1% at 3253.76, while the Shenzhen Composite Index slipped 0.2% to 2056.22. The tech-heavy ChiNext Price Index also edged down 0.2% to 2288.47. Several analysts said that the market may be close to a more sustainable recovery in the coming weeks, as risk appetite could improve after the market digests and prices in the Fed's upcoming interest-rate decision later this week. The clarity on the direction of monetary policy could remove some uncertainty and allow investors to focus more on Chinese companies' earnings recovery story, they said.
FOREX
JPY weakened against most G-10 and Asian currencies in the morning session as risk appetite improves, undermining the safe-haven appeal of the yen. Focus was on news that UBS will take over troubled lender Credit Suisse to lower systemic risks in the financial system and that New York Community Bancorp's subsidiary has agreed to acquire most of the deposits and some of the loans of failed Signature Bank, said MUFG Bank's analysts. USD/JPY rose 0.5% to 132.38, AUD/JPY gained 0.2% to 88.69 and EUR/JPY was up 0.4% at 141.32.
METALS
Gold prices were lower in early Asian trade, amid easing concerns over the financial sector following news that UBS has agreed to buy Credit Suisse for over $3 billion. Markets will likely keep a close eye on the Fed on Wednesday. "All bets of a 50-basis-point hike have vanished, with there being rising expectations of an end to the tightening cycle," DailyFX said. Oanda puts key resistance level for gold at $1,960, around the February highs. Spot gold was 0.6% lower at $1,977.17/oz.
OIL SUMMARY
Oil prices rose in early Asian trade, recovering from the biggest weekly drop of 2023 on Friday. ANZ analysts reckoned that it may be an opportune time for the U.S. to refill its strategic reserve, given that it's at its lowest level since the 1980s. "The White House administration has previously said it won't start refilling it until prices fall below USD70/bbl, a level WTI closed below last week," they add. News that UBS has agreed to buy Credit Suisse for over $3 billion, meanwhile, was helping to ease concerns over the banking sector and boost market sentiment. Front-month WTI rose 0.5% to $67.05/bbl; front-month Brent gained 0.4% to $73.28/bbl.
TOP HEADLINES UBS Agrees to Buy Credit Suisse for More Than $3 Billion China's Benchmark Loan Rates Remain Unchanged Vladimir Putin Harshly Criticizes West as Xi Jinping Strikes Softer Tone First Republic Bank Looms Large for U.S. Regulators After Credit Suisse Sale Credit Suisse Will Continue Operating in Singapore, MAS Says Smaller Banks' Critical Role in Economy Means Distress Raises Recession Risks Escalating Demand for Soybean Oil Hits Possible Slowdown RBA Says Only Half Of Interest Rate Increases So Far Impacting Economy Many Investors Are Skeptical of Jumping in on China's Highly Touted Recovery Ukraine Grain Deal Is Extended; Russian Drones Downed Europe Moves to Revive Mining to Cut Reliance on China Fed Raised Concerns About SVB's Risk Management in 2019 Toyota Industries Shares Slump After It Suspends Shipments of Certain Forklifts Independent Audit Identifies Rio Tinto Cultural-Heritage Shortcomings TikTok's Chinese Parent Has Another Wildly Popular App in the U.S. Signature Bank's Quirky Mix of Customers Fueled Its Rise and Hastened Its Fall Labor Strife at New York Times Intensifies, Dividing Staff Ford, GM Engage in China Price War as Car Sales Slump Virgin Orbit, Richard Branson's Satellite-Launch Venture, Has Fallen Fast War in Ukraine Has Supercharged This German Weapons Maker Putin Visits Mariupol in First Known Trip to Ukrainian Territory Taken by Russia During War French Protests, Turning Violent, Aim to Override Macron's Pension Overhaul West Bank Violence Flares as Israelis, Palestinians Meet to Calm Tensions
(END) Dow Jones Newswires
03-19-23 2315ET
