Today’s Announcements & News
Asia-Pacific markets fell on Monday as U.S. regulators announced plans to support savers and financial institutions linked to Silicon Valley Bank, a move seen as curbing further systemic risks.
Silicon Valley Bank was shut down by regulators last week after customers withdrew a staggering $42 billion in deposits by the end of Thursday.
In Japan, the Topix fell 2.19%, leading the region’s losses as SoftBank shares
Shares fell more than 2 percent as investors continued to assess concerns over contagion. The Nikkei 225 fell 1.76%.
In Australia, the S&P/ASX 200 fell 0.68% as banks continued to fall.
The Kospi fell 0.75 percent and the Kosdaq fell 1.73 percent after South Korean officials reportedly expressed concern over the weekend over heightened market volatility ahead of the collapse of Silicon Valley Bank.
Stock futures soared late Sunday after regulators announced a plan to freeze all depositors at the failed Silicon Valley bank and provide additional funds to other banks.
S&P 500 futures rose 1.1%, while Nasdaq 100 futures rose 1.2%. Futures tied to the Dow Jones Industrial Average were up 265 points.
All Silicon Valley Bank depositors will be able to withdraw money starting Monday, according to a joint statement from the Treasury Department, the Federal Reserve and the FDIC.
“Today, we are taking decisive action to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement said.
“We’re going into the weekend just as a very binary event. Either 100 percent of the uninsured depositors will be blocked, or they won’t be,” Peter Boockvar, chief investment officer at Bleakley Financial Group, said on a CNBC special Sunday. With this support, the market will celebrate.
Gold rose nearly 2% on Friday, buoyed by falls in U.S. Treasury yields and broader financial markets, as concerns about the impact on the banking sector overshadowed a strong U.S. jobs report and spurred safe-haven flows into the precious metal.
Spot gold rose 1.98% to $1,867.22 an ounce, its highest level since Feb. 14. U.S. gold futures also rose 2.03 percent to $1,871.90 an ounce.
The above analysis is only for the views of market researchers and is for reference only and is not regarded as a specific investment suggestion.