Daily Market Update - 20 Mar 2023
"Market Update: US Index Futures Negative, Major Currencies Flat, Precious Metals Mixed, Asian Markets Sink, Oil Decreases, and US Dollar Index Stable"
On Monday, Asian markets experienced a decline. Despite the implementation of emergency measures to increase available funds and bank consolidations in the United States and Europe, concerns about a possible banking crisis persisted. Investors are now waiting for further indications on monetary policy from the upcoming Federal Reserve meeting.
The People's Bank of China (PBOC) has maintained its record-low loan prime rates, indicating an effort to ease liquidity conditions and bolster the country's economic expansion.
Several major central banks worldwide coordinated efforts to prevent a banking crisis from spreading. The Swiss authorities brokered a deal for UBS Group AG to acquire Credit Suisse Group AG for 3 billion Swiss francs ($3.23 billion) and assume up to $5.4 billion in losses. The deal is supported by a significant Swiss guarantee and is expected to close by the end of 2023.
Following the announcement, the US Federal Reserve, the European Central Bank, and other major central banks issued statements to reassure the markets, which have been negatively impacted by the ongoing banking crisis. The crisis started with the collapse of two regional US banks earlier this month.