03/27/2023
🔥The latest industry news to share, the world's hottest event analysis, the most practical stock knowledge (banking crisis dragged down US stocks, Deutsche Bank, German government and ECB took turns to appease the market, three major stock indices opened lower, most popular Chinese stocks closed lower; traders further lowered Fed rate hike expectations, Fed rate swaps completely ruled out a 25 basis point rate hike in May)
✨ [US stock market news].
The three major US stock indexes opened lower on Friday, with most of the popular Chinese stocks closing lower. By the close, the Dow was up 0.41%, the Nasdaq was up 0.31% and the S&P was up 0.56%. The US 10-year Treasury yield fell 1.515% to close at 3.38%, a -40 basis point spread compared to the two-year Treasury yield. The panic index VIX fell 3.85% and Brent crude oil closed 0.81% lower. Spot gold continued to move higher from Nov 22 to date, closing 0.75% lower yesterday at $1978.25/oz. The US Dollar Index continued to retreat from its highs to close at 103.13.
The preliminary US Markit Manufacturing PMI for March recorded 49.3, a new high since October 2022. The preliminary services PMI registered 53.8, a new high since April 2022. So far, March has seen an encouraging recovery in economic growth, with business surveys showing output accelerating to its fastest level since May last year. the PMI figures are broadly in line with annualised GDP growth of close to 2%, painting a more positive picture of economic resilience than the recession of the second half of last year and early 2023. However, the economic upturn was uneven and largely driven by the services sector. While manufacturing output increased slightly, this largely reflected improvements in the supply chain, allowing firms to fulfil the backlog of orders that had built up during the post-epidemic surge in demand. What is clear is that new orders in manufacturing have fallen for six consecutive months. Unless demand improves, there appears to be little scope for maintaining current levels of production growth. Traders further downgraded Fed rate hike expectations, with Fed rate swaps ruling out a 25 basis point rate hike in May altogether.
Canadian retail sales recorded a monthly rate of 1.4% in January, a new high since May 2022. Eurozone manufacturing PMI recorded a preliminary reading of 47.1 in March, a new low since October 2022. The London Metal Exchange (LME) cut margins on copper to $700 per tonne from $724 per tonne and on tin to $3,350 per tonne from $3,842 per tonne, effective after the close of business on 29 March 2023. Russia is on the verge of committing to cut oil production by 500,000 bpd and will meet that commitment in the coming days, said Russian Deputy Prime Minister Novak.
German Chancellor Scholz said Deutsche Bank was "very profitable" and there was no cause for concern. This comes after Deutsche Bank's share price fell and CDS soared on fears that the bank could become the next Credit Suisse. Deutsche Bank reportedly said it would redeem its US$1.5 billion of fixed-to-fixed reset rate Tier 2 capital notes due 2028 on 24 May 2023 at 100% of the principal amount and accrued interest up to, but not including, the redemption date. All necessary regulatory approvals have been received for the program and formal notice of redemption will be delivered in accordance with the indenture terms of the notes. Deutsche Bank's five-year credit default swap (CDS) fell a further 7 basis points from earlier Friday to 208 basis points, still the highest level since late 2018, according to S&P Global Market Intelligence data.
✨ [Industry Sectors] In terms of industry sectors, the S&P saw all nine of its major sectors close higher, except for financials and semiconductors, which closed down 0.06% and 1.73%, respectively: tech, energy, industrials, and communications closed up within 0.51%, raw materials closed up 0.81%, and daily consumption, real estate, and utilities closed up 1.7%, 2.57%, and 3.12%, respectively.
✨ [live news1. Ford plans to make driver assistance features the centrepiece of its next-generation electric F-Series pickup
2. Research firm Autonomous Research: Deutsche Bank is not the next Credit Suisse
3.Samsung's Lee Jae-yong visits China to attend annual meeting of China Development Forum
4.OpenAI applies for GPT-4 trademark in China
5.ChatGPT launches plug-in feature seen as 'Apple's App Store' moment