• Mon. Mar 20th, 2023

Nasdaq futures rise following bank rout, additional financial information on tap


Mar 16, 2023

(Reuters) – Nasdaq futures rose on Thursday as the Swiss central bank’s lifeline for Credit Suisse calmed international markets, with investors awaiting additional financial information to assess the Federal Reserve’s monetary tightening path.

U.S.-listed shares of Credit Suisse rose three% in premarket trading, following the bank secured a credit line of up to $54 billion from the Swiss National Bank to shore up liquidity and investor self-confidence, which had nosedived following the lender’s shares slumped on Wednesday.

Wall Street’s primary indexes had been below serious promoting stress in the preceding session following troubles at Credit Suisse reignited fears of a banking crisis, which had eased following emergency measures by U.S. authorities following the collapse of SVB Economic and Signature Bank.

“We think fears about bank solvency are overdone, and most banks retain robust liquidity positions,” Mark Haefele, chief investment officer at UBS International Wealth Management, stated in a note.

“But tight funding situations can nonetheless pose a challenge for a compact quantity of person banks, and sector profitability faces headwinds additional broadly.”

U.S. massive banks edged greater in premarket trading following a downbeat session on Wednesday, with JPMorgan Chase &amp Co, Citigroup and Bank of America Corp adding about 1% each and every.

Shares of regional banks Western Alliance Bancorp, PacWest Bancorp, and bank and brokerage Charles Schwab Corp had been up eight.two%, 1.three% and two.85% respectively.

Yields on the two-year and the ten-year Treasury notes rose following steep declines on Wednesday, with the income markets now seeing 69% possibility of a 25-basis-point price hike by the Fed on March 22..

A slew of financial information, which includes February housing begin numbers and weekly jobless claims, will be released at eight:30 a.m. ET, which might aid investors in gauging the strength of the American economy.

The Federal Reserve Bank of Philadelphia will also problem Manufacturing Business enterprise Outlook Survey for March.

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On Wednesday, information showed U.S. retail sales fell .four% final month following three.two% development in January, although a separate report showed U.S. producer costs unexpectedly fell in February, which fueled hopes that the Fed may well slow its price hikes.

At five:15 a.m. ET, Dow e-minis had been down 46 points, or .14%, S&ampP 500 e-minis had been down 1.75 points, or .04%, and Nasdaq one hundred e-minis had been up 37.five points, or .three%.

(Reporting by Shubham Batra and Bansari Mayur Kamdar in Bengaluru editing by Uttaresh Venkateshwaran)