Financial Markets Daily Report28 March 2023
Investors started the week trading with more appetite for risk, as concerns about the banking sector receded following the announcement that SVB is to be acquired by another institution (First Citizens Bank & Trust) and news reporting additional support from the US authorities for regional banks.
- Investors started the week trading with more appetite for risk, as concerns about the banking sector receded following the announcement that SVB is to be acquired by another institution (First Citizens Bank & Trust) and news reporting additional support from the US authorities for regional banks.
- On the data front, the IFO survey in Germany showed confidence improved more than expected in March (93.3 after 91.1), as respondents saw more optimism about current economic conditions as well as expectations for the future.
- In this context, yields on sovereign bond rose across the board, more notably in the short end of the curve, while equity indices gained strongly in Europe and were mixed in the US. The USD depreciated against peers, trading near 1.08 against the EUR. In addition, oil prices continued to recover, but remaining still below 80 $/barrel for the Brent.
- Today, ECB president Christine Lagarde is due to give a speech at the BIS.