U.S. and European stock markets rebound across the board! Banking stocks turn upward; UBS erases 16% of its losses, while First Republic Bank falls 17%.

After U.S. stock index futures across the three major indices turned higher, gains continued to widen: Dow Jones futures rose 0.4%, S&P 500 futures rose 0.4%, and Nasdaq futures rose 0.3%. U.S. bank stocks rose pre-market across the board: UBS gained nearly 2%, Pacific Western Bancorp surged over 17%, and Western Alliance Bancorporation rose over 10%; First Republic Bank remained down over 18%, while Credit Suisse continued falling 56%. Vítor Constâncio, Member of the ECB’s Governing Council and Governor of the Bank of Italy, stated: “We have the tools to address any liquidity crisis. European banks face no issues regarding capital or liquidity. The ECB must assess the pace and magnitude of rate hikes at each successive meeting.” Perrazzelli, a member of the ECB’s Supervisory Board, stated there is “no reason for concern” regarding Additional Tier 1 (AT1) bonds. According to media reports, Goldman Sachs said it expects the Federal Reserve to hold rates steady this week due to banking-sector stress. Goldman Sachs forecasts the Fed will resume hiking by 25 basis points at its May meeting, followed by further 25-basis-point hikes in June and July. However, the CME FedWatch Tool currently shows investors assign a 70% probability to a 25-basis-point hike and a 30% probability to no hike. [Market update as of 17:55] Several European equity indices turned positive: Germany’s DAX 30 and Italy’s FTSE MIB both reversed earlier declines of over 2% to post gains; the Euro Stoxx 50, France’s CAC 40, and the UK’s FTSE 100 also all turned positive. Banking stocks narrowed their losses: Deutsche Bank fell 3%, having earlier plunged over 10%; Commerzbank and Standard Chartered narrowed losses to under 4%. Nonetheless, Credit Suisse’s European-listed shares remained down over 60%; its U.S.-listed shares fell 58% pre-market, while UBS’s U.S.-listed shares were down 7.3% pre-market. [Market update as of 17:30] Invesco’s Extra Tier 1 Capital (AT1) Capital Bond UCITS ETF—listed in London—fell 17%, marking its largest single-day drop since its launch in 2018. [Market update as of 17:05] At 2 p.m. CET on Monday, March 20, European equities had narrowed losses two hours after opening: the Euro Stoxx 50 was down nearly 1%, having earlier dropped 2%; Italian, Spanish, German, French, and UK markets all narrowed losses to around 1%. The Stoxx Europe 600 Banks Index fell nearly 3%, erasing its year-to-date gains. Credit Suisse fell over 62%, UBS over 13%, Deutsche Bank over 6%, and Commerzbank, Société Générale, and Standard Chartered all fell over 4%. All three major U.S. equity index futures declined: Dow Jones futures fell 0.6%, S&P 500 futures fell 0.5%, and Nasdaq futures fell 0.3%. U.S. bank stocks tumbled pre-market: Credit Suisse briefly plunged 60%, First Republic Bank fell over 20%, UBS fell nearly 9%, and HSBC Holdings fell over 2%.

European equities opened lower, Asian markets edged higher, the U.S. dollar weakened, and global attention turns to the ‘Super 72 Hours’.

Investors are turning their focus toward the upcoming ‘Super 72 Hours’, which includes the release of U.S. Q2 GDP data, the Federal Reserve’s interest-rate decision, and earnings reports from a series of tech giants; the highly anticipated U.S. July nonfarm payrolls report is scheduled for release on Friday. S&P 500 futures rose 0.1%. Nasdaq-100 futures rose 0.2%. Germany’s DAX 30 opened down 0.10%. The UK’s FTSE 100 opened down 0.32%. France’s CAC 40 opened down 0.29%. The Euro Stoxx 50 opened down 0.09%. Japan’s Nikkei 225 closed down 0.05% at 40,654.7. Japan’s Topix index closed up 0.4%. South Korea’s KOSPI closed up 0.7%. The U.S. Dollar Index fell 0.15% to 98.78. The euro was virtually unchanged at $1.1553. The Japanese yen strengthened 0.4% against the U.S. dollar to 147.94. The yield on 10-year U.S. Treasury notes held steady at 4.32%. Spot gold rose 0.11% to $3,329.87. WTI crude oil rose 0.12% to $69.29. Bitcoin rose 0.4% to $117,907.15. European equities came under pressure amid divergent corporate earnings, with investors focusing on multiple catalysts. Recent progress in U.S.-China relations triggered only a muted market response. Jun Bei Liu, Founder of Ten Cap Investment, commented that recent negotiations demonstrated “a willingness to reach an agreement,” and that markets have remained “very strong—what we’re seeing now is merely some consolidation.” Billy Leung, Investment Strategist at Global X ETFs, remarked: “The market has become increasingly adept at pricing in such developments—that is, simply declaring progress as ‘positive’ leads markets to price in the delay itself. In the past, such a lack of substantive breakthrough would likely have triggered a far more negative reaction.” The Stoxx Europe 600 Index fell 0.3%. Dragging down the index were a series of disappointing corporate earnings, especially from the banking and automotive sectors. HSBC Holdings’ share price plunged 5% after quarterly profits missed expectations; UBS Group, by contrast, saw its share price rise as much as 3.7% after reporting better-than-expected results. Mercedes-Benz Group and Aston Martin Lagonda Global Holdings both saw their share prices fall after lowering their business outlooks. In the consumer sector, Adidas reported revenue growth below expectations, sending its share price sharply down 7%.

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European Stocks Erase Losses as Oil Price Falls; HSBC Slides

European Stocks Erase Losses as Oil Price Falls; HSBC Slides

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