As the North American trading session begins, the Japanese Yen (JPY) emerges as the strongest currency, and the US Dollar (USD) as the weakest. Key events in the financial markets include:
- Support to Credit Suisse from the Swiss National Bank (SNB), but shares are down today at $2 as banks rebuff ideas of a takeover.
- A consortium of US banks pledging around $30B in deposits to aid First Republic Bank. The shares are down today in premarket after the bank cut out the dividend. Shares trade at $29.46 in premarket trading after closing at $34.27 yesterday
- The Fed announcing a $153B increase in discount window lending, exceeding 2008 banking crisis levels.
- The new Bank Term Funding Program providing an additional $12B in lending. There is massive support being provided as to banks failed in one other is teetering.
- The Bank of China cutting the reserve requirement ratio to 7.6%, the lowest since 2007.
- The cut is in reaction to slower growth and China need to spur growth toward the target 5% growth rate for the year.
Economic data due for release later Friday:
- Preliminary reading of the consumer sentiment index from the University of Michigan. Estimate 67.0 versus 66.4 last.
- Industrial and manufacturing production for February will be released at 9:15 AM. Industrial production is expected 0.2% while capacity utilization is expected at 78.4% (up from 78.3%.
Market updates:
- Triple witching day may add volatility to the US stock market.
- Major US stock indices are mixed in early trading, with the NASDAQ trading higher.
- US yields are lower after sharp gains yesterday.
Oil prices:
- Trading higher after hitting a low of $65.65 this week.
- Saudi Arabia and Russia's oil ministers met to discuss crude market support.
- Prices of crude oil down over 10% this week, the largest weekly decline this year.
- The price of oil tested the key 200-week MA this week.
A snapshot of the current market shows:
- Gold trading up $13 or 0.68% at $1934.60.
- Silver trading up $0.15 or 0.71% at $21.86.
- WTI crude oil trading up $0.39 at $68.72.
- Bitcoin trading higher at $26,928.
Premarket for US stocks:
- Major indices are mixed after yesterday's sharp gains.
- Dow Industrial Average -110.55 points after yesterday's 371.98 point rise
- S&P index down 6.2 points after yesterday 68.37 point rise
- NASDAQ index up up 27 points after yesterday's 283.22 point rise
European equity markets:
- Major indices marginally lower.
- All major European indices lower for the trading week.
- German DAX, -0.08%
- Frances CAC, -0.15%
- UK's FTSE 100, unchanged
- Spain's Ibex, -0.44%
- Italy's FTSE MIB -0.33%
For the trading week, the major European indices are all lower:
- German DAX -3.04%
- Frances CAC -2.83%
- UK's FTSE 100 -4.39%
- Spain's Ibex -4.69%
Asian-Pacific market:
- Japanese Nikkei 225 rose 1.20%, down 2.88% for the week.
- Hong Kong's Hang Seng index rose 1.64%, gaining 1.03% for the week.
- China's Shanghai Composite index rose 0.73% today, 0.63% for the week.
- Australia's ASX/S&P index rose 0.42% for the day but fell 2.1% for the week, marking the sixth consecutive week to the downside.
US debt market yields:
- 2 -year yield unchanged at 4.13%.
- 5-year yield down 7.5 basis points at 3.663%.
- 10-year yield down 7.4 basis points at 3.509%.
- 30-year yield down 4.9 basis points at 3.664%.
European debt market yields are lower following the ECB's 50 basis points rate hike, with ECB President Lagarde shifting future policy back to being data-dependent.