Global Markets

The US central bank was constrained to a 0.25% rate increase and to an unchanged 5.1% median terminal rate projection, due to the banking turmoil amidst elevated uncertainty

The Federal Reserve is facing one of its toughest decisions yet in terms of interest rates due to recent banking turmoil. Although the Fed had been preparing for another data-driven rate hike just a few weeks ago, the collapse of Silicon Valley Bank has led to a banking panic that has made the decision more complicated. As the Fed meets, officials must carefully consider how much weight to give the…

Watch today’s US Open for commentary on the takeover of Credit Suisse by UBS and how the banking turmoil has affected market expectations for the Fed’s policy decision, due on Wednesday

Join FXCM market specialists, Russell and Nikos as they discuss the current crisis in confidence surrounding the banking sector. In addition, the ECB has raised rates by 50bps and now all eyes turn to the Fed. However, it is uncertain that they will raise rates given the instability in the banking sector. This week also sees the BoE rate announcement.

Banking giant UBS agreed to buy troubled Credit Suisse with the blessing of Swiss regulator and government, with authorities around the world striving to safeguard the financial system, as focus now shifts the US Fed’s policy decision

The European Central Bank abided by its stated intentions and raised rates by 0.5% on Thursday, as the SNB lifeline to Credit Suisse helped contained fears over the banking sector, following the recent rout

The Federal Reserve makes its next policy decision on Wednesday March 22, against a highly uncertain backdrop and tame market expectations following the recent collapse of the Silicon Valley Bank

Watch today’s US Open for the initial reactions to the ECB’s 0.5% rate hike, commentary on the latest developments around Credit Suisse

The banking sector is under stress. It started with the demise of Silvergate Bank and then gained a momentum with the failure of SVB and Signature Bank last week. However, it was exacerbated yesterday with news of a growing crisis at Credit Suisse, Switzerland’s second-largest lender.

Bond yields are declining sharply as banking worries flare up again. This time its European banks which have triggered the flight to safety. The catalyst is the refusal of Credit Suisse’s biggest shareholder to invest anymore capital in the troubled bank. This, in turn, sparked selling in US regional bank shares as fears heighten that there is a distinct sensitivity to any rate increases within the sector. The CME Fedwatch…

China’s industrial production came in at 2.4% y/y. This is higher than the previous 1.3% but slightly lower than the 2.6% expected. Its retail sales printed at 3.5% y/y, a significant improvement from the previous months -1.8%. Fixed asset investment grew 5.5% y/y YTD, higher than the 5.1% for December.