The New York Stock Exchange ended slightly on Friday, quite pleased to end the week with no major news on the banking front, even if the market remains cautious and wait-and-see. The Dow Jones gained 0.41%, the Nasdaq index gained 0.31% and the broader S&P 500 index gained 0.57%.
The New York market had started in the red, weighed down by the renewed tension linked to the IPO of Deutsche Bank, treated as the new weak link in the banking sector. But in Frankfurt the title of largest German establishment by asset size was recovered at the end of the session, which somewhat calmed the nerves of the operators. “The market is digesting a very volatile week,” said Adam Sarhan of 50 Park Investments. In this context, “the absence of bad news is seen as a positive. The fact that no major banks have failed this week is, in itself, favorable.” In fact, the VIX index, which measures market volatility, finished down 3% after rising 11% earlier in the day.
A very probable decrease in tensions in the financial system
Wall Street’s favorite target since the bankruptcy of three US establishments, the regional bank First Republic limited its losses (-1.44%) after having sold up to more than 6%. Other investor painkillers in recent days have even ended in the green, such as the Californian PacWest (+3.19%), the Zions brand from Salt Lake City (Utah) (+2.91%) or the Western Alliance bank (+5 .76%). based in Phoenix, Arizona. However, the sector remains under pressure and some big names in the market, such as Morgan Stanley (-2.20%) and JPMorgan Chase (-1.52%) have suffered.
The president of the St. Louis (Missouri) branch of the US central bank (Fed) James Bullard estimated at 80% “the probability that tensions in the financial system will decrease” during an intervention this Thursday.
Following stocks, the bond market picked up its wits during the session and after plunging, Treasury bill rates rallied. Initially dipping to 3.55%, the yield on 2-year US government bonds, more volatile right now than its 10-year equivalent, rose to 3.77%, versus 3.83% for the previous day on fence.
“Background” macroeconomic indicators
For the past two weeks, the stock markets have lived to the rhythm of the setbacks of the banking system, the macroeconomic indicators “have passed into the background,” according to Adam Sarhan. This was again the case on Friday with the S&P Global Purchasing Managers’ Indices for March, which far exceeded expectations for both manufacturing and services activity.
On the stock market, Activision Blizzard shone (+5.91%) after the publication of an opinion from the British Competition Authority (CMA), which estimated, after examination, that the acquisition of the video game publisher by Microsoft (+1, 05%) not to have a “substantial” effect on the UK console gaming market. The day after his slip linked to the accusations of the Hindenburg Research fund, which accuses him of deceiving investors and of laxity in regulatory matters, Block continued to decline (-1.94%).
First beneficiary of TikTok’s stumbles, even more weakened after the hearing of its general manager in Congress on Thursday, Meta remained well oriented (+0.85%), like Snap (+1.49%), parent from the social network Snapchat. The company specializing in space launches of small satellites Virgin Orbit was boosted (+50.06%) by press reports about an imminent injection of funds into the capital of this company, which has been experiencing difficulties since a launch failure in early anus .
Source: BFM TV
