Headlines:
- First Citizens to assume all deposits, loans of Silicon Valley Bank
- ECB's Nagel: Inflation is still just too high
- ECB's de Cos: Recent tensions have generated a further tightening of financial conditions
- Germany March Ifo business climate index 93.3 vs 91.0 expected
- Eurozone February M3 money supply +2.9% vs +3.2% y/y expected
- UK March CBI retailing reported sales 1 vs -6 expected
Markets:
- CHF leads, JPY lags on the day
- European equities higher; S&P 500 futures up 0.6%
- US 10-year yields up 8 bps to 3.462%
- Gold down 1.1% to $1,954.43
- WTI crude up 1.3% to $70.19
- Bitcoin up 0.9% to $27,895
It's a brand new week and maybe this time markets can really look to put behind them the episode of the banking crisis of 2023.
Besides a brief hiccup at the start of European morning trade, it was quite straightforward as risk trades recovered to start things off this week. The banking turmoil looks to ease further and I guess that means the focus will start to turn back towards central banks and inflation once again.
There will still be watchful eyes on banks and the economy but the bigger picture is likely to stay the same as before we experienced what we did in the past few weeks.
US futures briefly erased its solid advance at the start of the session but is now back higher again. European equities kept pace and are on course for solid gains to kick start the final week of March trading.
Meanwhile, bond yields are also pulling higher as traders pare back safety bets further. Treasury yields are jumping with Fed fund futures also reflecting roughly 64% odds of the Fed holding rates unchanged in May - down from 85% at the start of the day.
The dollar was more mixed as it trades lower against the franc, loonie and pound while little changed against the euro and aussie. The yen is the main laggard though as bond yields jump higher, with USD/JPY rising from 130.50 earlier to 131.50 during the session.
