European stocks may open on a positive note Monday after U.S. officials unveiled sweeping measures Sunday to cap the fallout from the sudden collapse of Silicon Valley Bank.
State regulators also closed New York-based Signature Bank, which had been a popular funding source for cryptocurrency companies.
An emergency closed-door meeting will be held by the Federal Reserve Board of Governors later today to review and determine the advance and discount rates to be charged by the Federal Reserve banks.
The U.S. dollar fell sharply today as traders pared bets on the scope for further Fed policy tightening.
Gold prices were up around 1 percent, with the spotlight firmly on Tuesday’s U.S. inflation data and Thursday’s ECB meeting. The central bank is all set to raise interest rates by another 50 basis points at the meeting.
The Federal Reserve’s policy meeting is scheduled to be held on March 21-11, while the Bank of England meets a day after the FOMC meeting on March 23.
Asian markets traded mixed, tracking gains in U.S. stock futures. Oil edged up slightly, adding to Friday’s gains.
U.S. stocks tumbled on Friday and Treasury yields extended their slide amid worries over financial contagion from the implosions of Silicon Valley Bank (SVB) and Silvergate Capital.
February’s employment report sent mixed signals, with job growth beating expectations while slower wage growth and a rise in the unemployment rate fueled speculation that the Fed might moderate its rate hikes.
The Dow fell 1.1 percent, the S&P 500 lost 1.5 percent and the tech-heavy Nasdaq Composite slumped 1.8 percent.
European markets also closed sharply lower on Friday, led by a sell-off in the banking sector.
The pan European STOXX 600 declined 1.4 percent. The German DAX and France’s CAC 40 index both gave up around 1.3 percent while the U.K.’s FTSE 100 shed 1.7 percent.
Business News
European Shares Poised For Positive Opening
2023-03-13 05:42:18
