![]() With the banking turmoil rippling through financial markets, Bob Michele, the chief investment officer of fixed income at JPMorgan Asset Management, warned of an economic hard landing. “It’s too early to know how widespread the damage is.” “Are the dominoes starting to fall?” Fink, chairman of the world’s largest asset manager, said in a letter on Wednesday. ![]() ![]() Bridgewater Associates’ Ray Dalio said the recent failure of Silicon Valley Bank was just a “canary in the coal mine.” Doom” - said the troubled lender might be “too big to be saved.” BlackRock Inc.’s Larry Fink noted that the banking crisis could worsen, worrying aloud about cracks in the financial system that formed during more than a decade of easy money and low interest rates. The renewed bout of banking turbulence spurred some worrisome remarks from prominent Wall Street voices.Īs Credit Suisse nosedived, economist Nouriel Roubini - who’s known as “Dr. Read: Recession Risk Mounts as Credit Suisse Crushes Soft-Landing Hope So intense was the demand for the contracts - known as credit-default swaps - that they spiked to levels that signal the Zurich-based firm is in deep financial distress - something unseen at a major global lender since the throes of the financial crisis. They priced in a drop of more than 100 basis points in the US policy rate by year-end while downgrading the odds of additional tightening by the Bank of England and the European Central Bank.īanks that trade with Credit Suisse moved to safeguard their finances on Wednesday, snapping up contracts that will compensate them if the turmoil deepens. Not every haven asset rose, though, with the Swiss franc sinking more than 2% against the greenback.īond yields plunged globally as mounting financial-stability concerns prompted traders to abandon bets on additional rate hikes and begin factoring in cuts by the Federal Reserve. As investors sought refuge, gold reversed an earlier drop and the dollar rallied against all of its developed-market peers except the Japanese yen. ![]() Wall Street’s so-called fear gauge spiked after being relatively subdued for the most part this year. First Republic Bank led a rout in US regional peers after being cut to junk by two credit firms. also trimmed losses, but still hit the lowest since November 2020. A gauge of US financial heavyweights like JPMorgan Chase & Co. The S&P 500 pared a slide that topped 2% by more than half. Traders Dash for Cover as Bank Drama Rattles Globe: Markets WrapĮquities got some relief after Switzerland’s central bank and financial regulator said Credit Suisse will receive a liquidity backstop if needed - an effort to arrest the slump in confidence around the troubled lender. In New York City, a $100,000 Salary Feels Like $36,000 Ryan Reynolds-Backed Mint Is Bought by T-Mobile for $1.35 Billion (Bloomberg) - Volatility gripped global markets as fresh turmoil at Credit Suisse Group AG days after the collapse of some American regional banks spurred a frantic rush for safety, evoking memories of the 2008 financial crisis and bolstering speculation that policymakers will have to curb their hawkishness to prevent a harsher economic landing.įirst Republic Bank Is Said to Weigh Options Including a SaleĬredit Suisse Reels After Top Shareholder Rules Out Raising Stake
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