Global bank rout drags stocks lower after respite following Credit Suisse deal - 20.3.2023

The Dollar weakening is intact currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, lost 0.4% Friday while the University of Michigan survey showed US consumer sentiment fell for the first time in four months even as inflation expectations improved.

Both EUR/USD and GBP/USD accelerated their climbing on Friday. Both Pound and euro are lower against the Dollar currently. USD/JPY resumed retreating while AUD/USD continued advancing Friday with the yen higher against the Greenback currently and the Australian dollar lower.

US stocks indexes futures are down currently after closing solidly lower on Friday despite a $30 billion rescue package unveiled on Thursday for the First Republic Bank which closed down 33%. The three main US stock benchmarks recorded daily losses in the range from 0.7% to 1.2% on Friday with bank stocks leading losses.

European stock indexes futures are lower currently after stocks closed lower on Friday with bank shares leading losses despite announcements that Credit Suisse would receive financial help to prevent a crisis in the banking sector. Asian indexes futures are in red today as major central banks implemented a series of coordinated currency swaps to ensure banks have the dollars needed to operate. Hong Kong’s Hang Seng index is leading losses.

Brent is extending losses currently. Prices ended lower on Friday despite Saudi Arabia and Russia reaffirming on Thursday their commitment to OPEC+'s decision last October to cut production targets by two million barrels per day until the end of 2023. West Texas Intermediate (WTI) futures settled down 2.4% and is lower currently. Brent lost 2.3% to $72.97. Both benchmarks ended more than 12% lower on the week.