Macro Roundup (Mar 16)

SHANGHAI, Mar 16 - This is a roundup of global macroeconomic news last night and what is expected today.

The U.S. dollar rose on Wednesday on safe-haven buying after Credit Suisse’s stock tumbled following the disclosure of “weaknesses” in its financial reporting that renewed investor concerns that a full-blown global banking crisis may be brewing.

European currencies fell sharply against the dollar after Credit Suisse shares plummeted after its biggest investor, citing regulatory issues about the size of its holding, said it was unable to increase its stake.

Markets are pricing in a 50% chance of no change and a 50% chance of a 25 bps increase from the U.S. Federal Reserve next week.

U.S. stock futures ticked up Wednesday night after investor fears of a widespread banking crisis led to a volatile trading session.

Dow Jones Industrial Average futures were up 9 points, or 0.03%. Meanwhile, S&P 500 futures rose 0.11% and Nasdaq 100 futures climbed 0.35%.

The major averages had a rocky start in the morning following news that Credit Suisse’s largest investor, the Saudi National Bank, said that it could not provide additional funding for the bank. The announcement from SNB sparked a broad selloff over fears of a crisis in the financial sector.

During the regular trading session, the Dow at one point fell 725 points before ending the day down by 280.83 points, or 0.87% lower. The S&P 500 dropped 0.7%, and the tech-heavy Nasdaq Composite edged 0.05% higher.

Oil prices fell sharply Wednesday, as traders feared a brewing banking crisis could dent global economic growth.

West Texas Intermediate futures fell more than 5% to settle at $67.61 per barrel, reaching its lowest level since December 2021. Brent crude, the international benchmark, slid 4% to $74.36 per barrel.

Gold prices climbed over 1% to settle at their highest since early February on Wednesday as a fresh crisis in the banking sector turned investors away from seemingly riskier assets and drove them to the safety of bullion.

Gold gained 1.07% to settle at $1,931.3. Gold prices climbed over 1% to settle at their highest since early February on Wednesday as a fresh crisis in the banking sector turned investors away from seemingly riskier assets and drove them to the safety of bullion.

European stock markets fell sharply Wednesday, with banking stocks deep in negative territory amid the global Silicon Valley Bank fallout and more bad news for Credit Suisse.

The pan-European Stoxx 600 index provisionally closed 3% lower, with all sectors in the red.