European stocks rose amid investor hopes that the banking crisis would end.
European stocks rose at the beginning of the first trading sessions of the week as investors watched with cautious optimism the repercussions of the banking crisis after sharp losses in Friday’s session.
First Citizens Bank agreed to purchase Silicon Valley Bank deposits and loans, as announced by the US Federal Deposit Insurance Corporation today, which sent a dose of optimism in the markets, especially since the purchase appears voluntary and not regulated, as was done in the UBS acquisition of Credit Suisse by Swiss regulators.
The Stoxx Europe 600 Index rose 0.82% to 443 points, at 08:06 GMT, with banks leading the gains, up by 1.11%.
The British FTSE 100 index rose 0.61% at 7,450 points, the German DAX rose 0.73% to 15,066 points, and the French CAC added 0.66% at 7,061 points, ignoring the political volatility at home as pension strikes rocked the country.
Today’s economic data showed an increase in the IFO business climate index in Germany during March, as it recorded 93.3 points, compared to the previous reading at 91.1 points and expectations at 90.9 points, as well as the improvement in the IFO expectations index, which indicates companies’ expectations for the next six months.
Likewise, the M3 money supply percentage declined in the euro area in February, on an annual basis, as it recorded 2.9%, compared to 3.5% in January, and is considered an essential indicator concerning inflation because its rise means an increase in monetary expansion.
The percentage of private loans in the euro area decreased in February, on an annual basis, to a record 3.2%, compared to 3.6% in January.
The Nikkei index rose in light of the high sentiment due to the decline in the yen.
The Japanese Nikkei index rose Monday, March 27, for the first time in three days after the yen’s decline boosted sentiment in the market, which is closely linked to export activity. Still, concerns about a global banking crisis weighed on financial stocks and limited gains.
The index ended trading at a rise of 0.33% at 27,476.87 points, and during afternoon trading, it reached the highest level in two weeks at 27,385.25 points. Of the 225 stocks on the index, 161 rose, 57 fell, and seven remained unchanged.
The broader Topix index rose 0.33% to 1961.84 points.
Among the 33 sub-indices on the Tokyo Stock Exchange, the road transport index was the best performer, rising 1.78%. At the same time, the banking services index was the biggest loser, down 0.54%.
Automakers stocks were strong after the yen fell from its highest level in nearly two months against the dollar. Suzuki Motor shares increased by 1.37%, Subaru Corp rose by 0.53%, and Honda Motor shares gained by 0.62%.
On the other hand, chip equipment maker Tokyo Electron was among the biggest losers, erasing 43 points from the index, down 2.5%, after it tracked declines in similar stocks on Friday in the United States.
The stability of the dollar amid continuing concerns about the banking crisis.
The dollar witnessed stability Monday, March 27, while the yen hovered near its highest level in 7 weeks, when investors are assessing the measures taken by the authorities and regulators to calm concerns about the global banking system.
The dollar index, which measures the performance of the US currency against six major currencies, rose 0.078% to 103.07, after it rose 0.5% on Friday, amid banking tensions that led to a decline in Deutsche Bank shares by nearly 9%.
The euro rose 0.05% to $1.0764 after falling 0.6% on Friday. The pound sterling reached $1.2235, up 0.05% daily, after falling 0.5% on Friday.
The Australian dollar rose 0.09% to $0.665.In terms of digital currencies, the last rise of Bitcoin was 0.84%, to $27,861.02. The last rise of Ethereum was 0.71%, to $1,763.39.
Gold prices fell as investors absorbed the developments of the banking crisis.
Gold prices fell for the second consecutive session on Monday, with the dollar’s rise. Investors evaluate banking sector developments to see the banking crisis’s depth after the announcement of a new bank acquisition deal in the United States.
Today, the US Federal Deposit Insurance Corporation announced First Citizen’s purchase of SVB’s deposits and loans, just over two weeks after the largest banking collapse in the US since the Lehman Brothers crisis.
Neel Kashkari, president of the Federal Reserve in Minneapolis, said the recent banking turmoil and the possibility of an ensuing credit crunch bring the US closer to recession.
And futures contracts for the yellow metal for June delivery fell by 0.59% at $ 1989.80 an ounce at 08:32 GMT, and the spot price for delivery fell 0.43%, or $ 8.58, to $ 1969.63 an ounce.
Silver futures for May delivery fell 0.49% to $23.23 an ounce, the spot price of platinum fell 1.45% at $969.98, and palladium fell 1.25% to $1404.22.
Oil rises as concerns about banking sector turmoil recede.
Oil prices rose in early trading Monday, March 27th, as concerns about turmoil in the banking sector receded.
Brent crude futures rose 33 cents, or 0.4%, to $75.32 a barrel by 00:40 GMT. US crude prices were $69.65 a barrel, up 39 cents or 0.6%. Brent rose 2.8% last week, while US crude increased 3.8% after the banking sector turmoil subsided.
Prices also rebounded after Russian President Vladimir Putin said he would deploy tactical nuclear weapons in neighboring Belarus, escalating geopolitical tensions in Europe over Ukraine.
The Russian Deputy Prime Minister, “Alexander Novak,” said Moscow is very close to achieving its goal of reducing crude production by 500 thousand barrels per day to about 9.5 million barrels per day.
Data from industry sources on Friday showed that Russia plans to cut refinery runs in April, allowing it to maintain crude oil exports while adhering to previously announced production cuts.
Regarding crude oil, Russian oil product exports have been hit hardest by the recent EU embargo, with tons of diesel on board ships waiting for buyers.
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