US equities ended Monday’s session higher, as the financial sector bounced back amid the recent choppiness in the markets. Meanwhile, uncertainty remained regarding whether the turmoil will impact the Fed’s monetary policy decision on Wednesday. The Dow Jones Industrial Average rose 1.2% to 32,245, the S&P 500 Index advanced 0.9% to 3,952, and the Nasdaq Composite went up by 0.4%. European markets also finished the day higher, reversing earlier losses, with the Euro Stoxx 50 Index up 1.3%. Mining shares led gains, followed by insurances while banks also reversed sharp losses. 

Summary as at 21.03.2023 

  • Most Asian equities rose on Tuesday as regulatory measures to stabilise the banking sector helped somewhat reassure investors, although fears of a potential worsening in conditions and uncertainty before a Federal Reserve meeting kept gains limited. Trading volumes were also limited for the day on account of a Japanese market holiday. Bank-heavy bourses saw the biggest rises of the day, with the ASX 200 in Australia up 1.1% on strong gains in the country’s big four banks. Elsewhere, technology-heavy indices were cautiously higher, with the Taiwan Weighted index up 0.5%, while Hong Kong’s Hang Seng index added 0.4%. 
  • European shares are on track to extend their rally alongside US equity futures, as investors’ worries over the health of the global banking system continue to abate. 
  • Oil prices fell in early Asian trade, cutting short a brief rebound from 15-month lows as the recent banking turmoil, fears of a recession, and signs of resilient Russian supply continued to weigh on the market. Goldman Sachs has downgraded its 12-month price outlook for Brent oil from $100 a barrel to $94, reflecting softer fundamentals, lower demand, and moderately higher non-OPEC supply. 
  • The Reserve Bank of Australia will mull pausing again its policy tightening cycle in April, minutes of its March meeting showed “recognizing that pausing could allow additional time to reassess the outlook for the economy.” They added that monetary policy in the nation was already in restrictive territory amid an uncertain economic outlook and sticky inflation. The board noted that while the headline inflation had likely peaked, it was not projected to return to a target range of 2-3% until mid-2025. 
  • US officials are studying ways they might temporarily expand Federal Deposit Insurance Corp. coverage to all deposits, a move sought by a coalition of banks arguing that it’s needed to head off a potential financial crisis. Treasury Department staff are reviewing whether federal regulators have enough emergency authority to temporarily insure deposits greater than the current $250k cap on most accounts without formal consent from a deeply divided Congress. Authorities don’t yet view such a move as necessary. Still, they are developing a strategy out of due diligence in case the situation worsens. 
  • Vladimir Putin said Russia is ready to discuss China’s initiative for ending the conflict in Ukraine, welcoming Chinese President Xi Jinping for a three-day visit that underlines Beijing’s support for Moscow.  “We’ve carefully studied your proposals to resolve the acute crisis in Ukraine,” Putin told Xi in televised comments at the start of their one-on-one talks in the Kremlin Monday. “We’ll discuss all these issues, including your initiative, which we of course view with respect.”  The trip to Moscow marks Xi’s most ambitious attempt yet to play the role of peacemaker as he seeks to broker an end to Russia’s war in Ukraine. 
  • Recruiters across the world are getting an unprecedented flood of calls from Credit Suisse Group AG bankers seeking new jobs as the embattled Swiss lender is set to be taken over by UBS Group. From Singapore to London to New York, headhunters and rival lenders have been fielding calls over the past few days from anxious Credit Suisse staff, according to people from more than a dozen firms with knowledge of the matter.