First Republic Bank shares dropped, fueling its potential to again weigh on the broader banking sector. Other regional bank stocks rose before the bell.
Archiv für den Monat: April 2023
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Britain’s top competition regulator on Wednesday moved to block Microsoft’s acquisition of video game publisher Activision Blizzard.
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The potential First Republic rescue plan is the latest twist in a saga sparked by the sudden collapse of Silicon Valley Bank last month.
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Meta set to report first-quarter earnings after the bell
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Boeing plans to boost 737 Max production to 38 planes per month despite manufacturing snag
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SK Hynix, one of the biggest memory chipmakers, reports record quarterly loss as prices slump
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ForexLive European FX news wrap: Dollar on edge again, late jump in bond yields
Headlines:
- AUD/USD down to six-week lows after CPI data earlier
- Dollar teeters on the edge against the euro, pound again
- Advisors have lined up potential purchasers of new First Republic stock – report
- BOJ has no reason to move this week, says Japan’s former top currency diplomat
- Germany May GfK consumer sentiment -25.7 vs -27.9 expected
- France April consumer confidence 83 vs 81 expected
- UK April CBI retailing reported sales 5 vs 0 expected
- Switzerland April Credit Suisse investor sentiment -33.3 vs -41.3 prior
- US MBA mortgage applications w.e. 21 April +3.7% vs -8.8% prior
Markets:
- EUR leads, AUD lags on the day
- European equities lower; S&P 500 futures up 0.1%
- US 10-year yields up 3 bps to 3.425%
- Gold down 0.1% to $1,995.18
- WTI crude down 0.5% to $76.70
- Bitcoin up 3.5% to $28,959
There weren’t many headlines during the session but there were some decent market moves all around.
It started off with a bit of a mixed picture in equities, with European stocks looking heavy while US futures were buoyed by tech shares. Microsoft reported stronger profits than estimated while Alphabet announced a $70 billion stock buyback and that propped up Nasdaq futures before a bit of a pullback in gains.
Bond yields were also higher but gradually slumped during the session before a late jump after some potential good news for First Republic Bank. 2-year Treasury yields slowly trickled down from 3.95% to 3.89% before jumping up to 3.96% on the headline.
USD/JPY also got a jolt higher as such, erasing losses from 133.30 to around 133.70 levels at the moment.
There were other more interesting moves in FX though, with EUR/USD climbing all the way from 1.0990 in the handover from Asia all the way to 1.1060. There are plenty of large option expiries in the pair, with one layered around current levels at 1.1030-45 so just be wary of that.
The pound also capitalised on the dollar softness with GBP/USD rising from 1.2430 to a high of 1.2490 during the session.
The aussie and the kiwi failed to find much respite though, with sentiment in the former being more of a drag. AUD/USD slumped to 0.6600 and fresh six-week lows after markets are now convinced that the RBA will not raise rates in May, following softer CPI data earlier in the day.
This article was written by Justin Low at www.forexlive.com.
Advisors have lined up potential purchasers of new First Republic stock – report
It looks like the big boys in the US may be called in for one last favour to First Republic. According to sources at CNBC, the supposed proposition will go something like this:
„Purchase bonds from First Republic at above-market rates for a total loss of a few billion dollars – or face roughly $30 billion in FDIC fees when First Republic fails.“
We are seeing bond yields jump on the headline, with 2-year Treasury yields now up to 3.95%:
Mind you, this is just a potential good news for First Republic. It is not a guarantee whatsoever that things will play out in this manner. But for now, it seems to be providing a brief respite for risk sentiment.
This article was written by Justin Low at www.forexlive.com.