Bank of England Governor Andrew Bailey said on Tuesday that stress was not being caused in the British banking system by recent problems that have triggered turmoil elsewhere, but the central bank remained vigilant. "I don't think that any, and we've said this, that any of these features cause stress in the UK banking system," Bailey told parliament's Treasury Committee.
* MSCI's EM stocks index rises after two days of falls. * Hungary cenbank to leave base rate steady later in the day. * Bank of Mexico seen hiking key rate by 25 bps on Thursday. By Shreyashi Sanyal.
Russia's energy minister said on Tuesday that the country had managed to successfully re-direct its oil exports to new markets, but that oil and gas production was expected to decline in 2023.
The Bank of Japan must be ready to issue central bank digital currencies that coexist with various other forms of money to offer the public a safe digital payment system, its governor Haruhiko Kuroda said on Tuesday.
A quarter of work in major economies could be automated thanks to breakthroughs in ChatGPT-like artificial intelligence technologies, according to Goldman Sachs.
* Gold might break resistance at $2,070 in H2 - technicals. * U.S. dollar down 0.2% * Global stocks rise on Tuesday. By Kavya Guduru. Gold edged up on Tuesday as the dollar slipped, although an improvement in risk appetite after efforts by regulators to allay fears over the global banking system slowed safe haven inflows into bullion. Spot gold was up 0.2% at $1,959.63 per ounce, as of 0557 GMT.
Asia is expected to record weighted real GDP growth of 4.5% this year, up from the 4.2% last year, the Boao Forum for Asia said in its annual report summary on Tuesday. The report also said Asian growth is likely to be a standout in 2023 in light of the global economic slowdown.
Gold prices edged up on Tuesday as the U.S. dollar eased, although an improvement in risk appetite after efforts by regulators to contain worries over the global banking system limited the safe-haven metal's appeal . FUNDAMENTALS. * Spot gold was up 0.1% at $1,958.85 per ounce, as of 0048 GMT. * The dollar index eased 0.1%, making bullion more affordable for buyers holding other currencies.
The shuffling of deposits from small to large banks could have a disproportionate impact on U.S. small businesses that depend heavily on community and regional financial institutions for credit, Federal Reserve Governor Philip Jefferson said on Monday.
Central banks in the U.S. and Australia are close to pausing rate increases as they strike a balance between financial stability and inflation fighting, HSBC Australia Chief Executive Antony Shaw said on Tuesday.
Silicon Valley Bank collapsed after it took a big bet on interest rates and got it wrong, Westpac Chief Executive Peter King said on Tuesday. "They took a pretty big punt on interest rates and they got it wrong," he said at the Australian Financial Review Banking Summit in Sydney.
The shuffling of deposits from small to large banks could have a disproportionate impact on U.S. small businesses who depend heavily on community and regional financial institutions for credit, Federal Reserve Governor Philip Jefferson said on Monday.
The shuffling of deposits from small to large banks could have a disproportionate impact on U.S. small businesses who depend heavily on community and regional financial institutions for credit, Federal Reserve Governor Philip Jefferson said on Monday.
KBRA Analytics releases this month?s edition of The Bank Treasury Newsletter, the Bank Treasury Chart Deck, and Bank Talk. This month?s newsletter, Bank Treasurers Reconsider Asteroid Insurance, reviews the critical steps the Federal Reserve, FDIC, and U.S. Treasury have taken to stabilize financial markets and reassure depositors in the wake of the bank failures this month.
The shuffling of deposits from small to large banks could have a disproportionate impact on U.S. small businesses that depend heavily on community and regional financial institutions for credit, Federal Reserve Governor Philip Jefferson said on Monday.
The acquisition of Silicon Valley Bank by First Citizens BancShares Inc ?and rumors of?a U.S.?government's extension of emergency lending arrangements provided relief to markets and the?banking sector on Monday. But it also resulted in significant shocks in Fed interest rate expectations and Treasuries' price action.
The U.S. Federal Reserve is "still learning" how much impact its interest rate increases have had on the economy and inflation, Federal Reserve Governor Philip Jefferson said on Monday.
* First Citizens to buy SVB assets; shares jump. * Bank indexes higher. * Tech shares slip. By Caroline Valetkevitch. NEW YORK, March 27 - The Dow and S&P 500 ended higher on Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while a decline in technology shares weighed on the Nasdaq.
Provident Bank, a leading New Jersey-based financial institution, today released results from its 2023 Consumer Spending Survey, which polled 1,000 adults living in the U.S. to determine how consumers are adjusting their personal spending, saving and travel habits.
* First Citizens to buy SVB assets; shares jump. * Bank indexes higher. * Indexes: Dow up 0.9%, S&P 500 up 0.5, Nasdaq down 0.1% By Caroline Valetkevitch. NEW YORK, March 27 - The Dow and S&P 500 were higher in afternoon trading Monday as a deal for Silicon Valley Bank's assets helped investor confidence in banks, while the Nasdaq edged lower.
The consensus outlook for interest rates has shifted dramatically in the last month thanks in large part to the failures of U.S. banks SVB Financial Group, Signature Bank and Silvergate Capital Corp, as well as the emergency takeover of Credit Suisse Group AG by UBS Group AG. What Happened?
Bahrain reported an increase in its GDP for 2022 with a growth rate of 4.9%, a statement from the finance ministry of Bahrain said on Monday. According to the statement this rate is the highest the Gulf kingdom has achieved since 2013. The statement also added that non-oil GDP grew by 6.2%, the highest since 2012.
After the collapse of two U.S. banks and record outflows from smaller lenders, the banking industry is shifting its concern from an immediate crisis to a medium-term worry: economic growth. Deposits held by small U.S. banks dropped by a record $119 billion to $5.46 trillion after the collapse of Silicon Valley Bank on March 10, according to data released Friday by the Federal Reserve.
After the collapse of two U.S. banks and record outflows from smaller lenders, the banking industry is shifting its concern from an immediate crisis to a medium-term worry: economic growth. Deposits held by small U.S. banks dropped by a record $119 billion to $5.46 trillion after the collapse of Silicon Valley Bank on March 10, according to data released Friday by the Federal Reserve.
Overall risk sentiment is picking up after fears of a systemic financial crisis have relaxed. Cues From Monday's Trading: Large cap and blue chip stocks were up, with banks outperforming other sectors.
* First Citizens to buy SVB assets; shares jump. * Other regional banks pare gains. * Tesla gains as Barclays forecasts upbeat deliveries. * Indexes mixed: Dow up 0.57%, S&P up 0.2, Nasdaq down 0.39% By Amruta Khandekar and Ankika Biswas.
Goldman Sachs Research?predicted?widespread use of artificial intelligence will?result in strong productivity gains and stronger long-term economic growth. According to the Goldman Sachs?Macro team, AI adoption could?create about $7 trillion in global economic growth over a 10-year period, comparable to a 7% increase in annual global GDP.
Brazil's central bank monetary policy director Bruno Serra has left his position at his request, according to the official gazette on Monday, backdated to March 23, while the new administration of President Luiz Inacio Lula da Silva has yet to announce a replacement candidate. The central bank stated in a note that Serra's departure follows the end of his term on Feb. 28.
* First Citizens to buy SVB assets; shares jump. * Regional, large bank stocks jump. * Tesla gains as Barclays forecasts upbeat deliveries. * Indexes up: Dow 0.88%, S&P 0.68%, Nasdaq 0.29% By Amruta Khandekar and Ankika Biswas.
Average potential global economic growth will slump to a three-decade low of 2.2% per year through 2030, ushering in a "lost decade" for the world's economy, unless policymakers adopt ambitious initiatives to boost labor supply, productivity and investment, the World Bank warned on Monday.
Average potential global economic growth will slump to a three-decade low of 2.2% per year through 2030, ushering in a "lost decade" for the world's economy, unless policymakers adopt ambitious initiatives to boost labor supply, productivity and investment, the World Bank warned on Monday.
Mexico posted a $1.844 billion trade deficit in February, adjusted for seasonal swings, the national statistics agency said on Monday. In non-seasonally adjusted terms, Mexico posted a trade deficit of $3.537 billion.
Brazil posted a lower-than-expected current account deficit in February, showed central bank data on Monday, mainly due to a decrease in factor payments. The country's current account deficit reached $2.8 billion in February, lower than the $5 billion shortfall forecast in a Reuters poll of economists.
Brazil posted a current account deficit of $2.815 billion in February, the central bank said on Monday, lower than the $5 billion shortfall forecast in a Reuters poll of economists. Foreign direct investment totaled $6.451 billion in February, missing the Reuters poll estimate of $10.177 billion.
* First Citizens to buy SVB assets; shares jump. * Regional, large bank stocks jump. * Futures up: Dow 0.59%, S&P 0.59%, Nasdaq 0.33% By Amruta Khandekar and Ankika Biswas. March 27 - U.S. stock index futures gained on Monday after a buyout deal for the deposits and loans of the failed Silicon Valley Bank helped soothe some jitters around stress in the banking sector.
The past week's economic events panned largely in line with expectations, as reflected by the positive market performance. What Happened: The week started with the Swiss central bank brokering a deal to bail out troubled investment bank Credit Suisse AG . Expectedly, the Fed raised the fed funds rate by 25 basis points and also signaled in the post-meeting policy statement a potential pause.
German government bond yields rose on Monday, going against this month's trend, as fears about banking turmoil eased and traders bet that the European Central Bank will raise interest rates further. Germany's 2-year bond yield, which is highly sensitive to changes in interest rate expectations, was last up 14 basis points to 2.51%. Bond yields rise when prices fall, and vice versa.
Overall risk sentiment is picking up after fears of a systemic financial crisis reduced. Cues From Monday's Trading: Large cap and blue chip stocks were up, with banks outperforming other sectors.
A look at the day ahead in U.S. and global markets from Mike Dolan. The final week of a turbulent month and volatile quarter for world markets has kicked off with relative stability in the battered banking sector at the heart of the latest upheaval. Two developments on the U.S. side of the banking disturbance acted as a boon.
* Futures up: Dow 0.31%, S&P 0.34%, Nasdaq 0.17% U.S. stock index futures edged higher on Monday after a buyout deal for failed Silicon Valley Bank's deposits and loans helped soothe some jitters around severe stress in the banking sector.
* Index at 93.3 vs expected 91.0. * Bank turmoil had little effect -Ifo. * No reason for optimism -analysts. German business morale unexpectedly rose in March, adding to signs that Europe's largest economy is stabilizing despite recent turmoil in the banking sector, a survey showed on Monday. The Ifo institute said its business climate index jumped to 93.3 from a reading of 91.1 in February.
The Hungarian forint and
Czech crown edged down on Monday, as markets turned to central
bank meetings due this week to gauge how quickly policymakers
may begin interest rate cuts this year.
German business morale unexpectedly rose in March, adding to signs that Europe's largest economy is recovering despite the energy crisis and high inflation, a survey showed on Monday. The Ifo institute said its business climate index stood at 93.3 following a reading of 91.1 in February.
German government bond yields rose on Monday as fears about banking turmoil eased and traders bet another European Central Bank rate hike is coming. Germany's 2-year bond yield, which is highly sensitive to changes in interest rate expectations, was last up 11 basis points to 2.489%. Bond yields rise when prices fall, and vice versa.
At an incredible end to the first quarter for financial markets, rattled by bank turmoil, some stability will be much hoped for in coming days. But don't bet on it. Here's a look at the week ahead in markets from Kevin Buckland in Tokyo, Lewis Krauskopf in New York and Naomi Rovnick, Amanda Cooper and Dhara Ranasinghe in London. 1/ A COCO-NUTS QUARTER. What a quarter.
* First Citizens buys SVB loans, deposits. * Top U.S. bank regulators to say system on solid footing. * White House says banking system is safe. * Central bank officials monitoring credit crunch risks. By Susan Mathew, Amruta Khandekar and Pete Schroeder.
Japan's business-to-business services inflation picked up in February on a tourism rebound and rising labour costs, data showed, offering the central bank hope that steady wage hikes would aid in sustainably hitting its 2% inflation target.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
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