Looming Fed Decision May Lead To Choppy Trading On Wall Street

[ADVFN]( [[Global Email] World Daily Markets Bulletin]( Monday, 20 March 2023 12:14:57 [ADVFN Twitter]( [Monitor]( [Quote]( [Charts]( [News]( [Toplists]( [Boards]( [Try AI Investing, Get 10 Free Shares]( Have you tried Magnifi Personal yet? With the world's first AI investing assistant, it's like having a co-pilot for your investing. You can get 24/7 personalized guidance, on-demand analysis, plus a commission-free investment marketplace. [Get started]( --------------------------------------------------------------- US Market Bitcoin [Bitcoin]( DAX [DAX]( Dow Jones [Dow Jones]( Nasdaq [Nasdaq]( The major U.S. index futures are currently pointing to a roughly flat open on Monday, with stocks likely to show a lack of direction following last Friday?s pullback. Traders may be reluctant to make any significant moves ahead of the Federal Reserve?s monetary policy announcement on Wednesday. Recent turmoil in the banking sector has led to some optimism the Fed will hold off on raising interest rates following the two-day meeting. CME Group?s FedWatch Tool is currently indicating a 34.3 percent chance the Fed will leave rates unchanged and a 65.7 percent chance of a 25 basis point rate hike. However, concerns about the banking sector may continue to weigh on the markets, with U.S.-listed shares of Credit Suisse (CS) seeing substantial pre-market weakness. The nosedive by Credit Suisse comes following news of an historic state-backed rescue of the troubled lender by Swiss rival UBS Group. Shares of First Republic (FRC) are also moving sharply lower in pre-market trading after Standard & Poor?s lowered the bank?s credit rating once again. On the other hand, shares of New York Community Bank (NYCB) are seeing significant pre-market strength after the bank agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal. After moving sharply higher over the course of Thursday's session, stocks saw a significant pullback during trading on Friday. The major averages all showed notable moves to the downside on the day, with the Nasdaq snapping a four-day winning streak. The major averages finished the session off their worst levels but still firmly negative. The Dow tumbled 384.57 points or 1.2 percent to 31,861.98, the Nasdaq slid 86.76 points or 0.7 percent to 11,630.51 and the S&P 500 slumped 43.64 points or 1.1 percent to 3,916.64. For the week, the Nasdaq soared by 4.4 percent and the S&P 500 jumped by 1.4 percent, but the narrower Dow edged down by 0.2 percent. The pullback on Wall Street came as some traders looked to cash in on Thursday's rally amid lingering concerns about turmoil in the financial sector. Shares of First Republic Bank (FRC) showed a significant pullback on the day, plummeting by 32.8 percent after surging by 10.0 percent on Thursday. The jump in the previous session came as a group of financial institutions agreed to deposit $30 billion in First Republic in an effort to express confidence in the banking system. "U.S. stocks are weakening on fears that this week's banking turmoil will lead to tighter lending standards that will cripple small businesses and eventually send this economy into a recession," said Edward Moya, senior market analyst at OANDA. He added, "The Fed's rate hiking cycle was already feeling restrictive, so now that we have rising risks of more bank bailouts and even tighter credit standards, the growth outlook for the economy is rather bleak." Traders also continued to look ahead to the Federal Reserve's monetary policy announcement on Wednesday. In U.S. economic news, the Fed released a report showing U.S. industrial production was unexpectedly unchanged in the month of February. The Fed said industrial production was unchanged in February following a revised 0.3 percent increase in January. Economists had expected industrial production to rise by 0.2 percent compared to the unchanged reading originally reported for the previous month. A separate report from the University of Michigan showed consumer sentiment in the U.S. fell for the first time in four months in March. The report said the consumer sentiment index slid to 63.4 in March from 67.0 in February. Economists had expected the index to be unchanged. Surveys of Consumers Director Joanne Hsu noted the decrease was already fully realized prior to the failure of Silicon Valley Bank. Meanwhile, the report showed decreases in both near-term and long-term inflation expectations, with year-ahead inflation expectations falling to the lowest level since April 2021. Banking stocks pulled back sharply after rebounding in the previous session, with the KBW Bank Index plunging by 5.3 percent. Considerable weakness was also visible among oil service stocks, as reflected by the 3.0 percent nosedive by the Philadelphia Oil Service Index. The sell-off by oil service stocks came as the price of crude for April delivery tumbled $1.61 to $66.74 a barrel. Airline stocks also showed a significant move to the downside on the day, dragging the NYSE Arca Airline Index down by 3.0 percent. Brokerage, commercial real estate and biotechnology stocks also saw notable weakness, while gold stocks bucked the downtrend amid a spike by the price of the precious metal. --------------------------------------------------------------- Read the latest breaking news stories about the hottest companies. [Click here to Find Out More.]( --------------------------------------------------------------- U.S. Economic Reports CADUSD [CADUSD]( Oil [Oil]( Gold [Gold]( EURUSD [EURUSD]( No major U.S. economic data is scheduled to be released today. --------------------------------------------------------------- [3 Tiny Stocks Primed to Explode]( The world's greatest investor ? Warren Buffett ? has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential. We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns. [Click here for full details and to join for free.]( --------------------------------------------------------------- Europe European stocks have turned higher over the course of the trading session on Monday after having fallen sharply earlier in the day on concerns over a deepening banking crisis and an impending recession. While the French CAC 40 Index has advanced by 0.7 percent, the German DAX Index is up by 0.5 percent and the U.K.?s FTSE 100 Index is up by 0.3 percent. Novartis have moved higher after presenting new long-term data for Zolgensma demonstrating sustained durability up to 7.5 years post-dosing. Precision measurement company Spectris is also marginally higher in London after commencing the third tranche of a share repurchase program. Meanwhile, FirstGroup has fallen despite extending its current arrangements for the West Coast Rail partnership with the Department for Transport. In economic news, preliminary data showed German producer price inflation eased for the fifth straight month in February to reach its lowest level in nearly one-and-a-half years amid a continued slowdown in energy prices. The producer price index climbed 15.8 percent year-over-year in February, which was slower than the 17.6 percent rise in January, Destatis reported. Economists had forecast the price growth to ease to 14.5 percent. Further, the latest inflation rate was the weakest since September 2021, when prices had risen 14.2 percent. --------------------------------------------------------------- [Sell every Stock except ONE]( Markets are down... But Jeff Clark couldn't care less because he ignores almost every stock in the market except ONE. He lives financially free trading this One Stock Once per month... [Ticker Revealed.]( --------------------------------------------------------------- Asia USDCAD [USDCAD]( USDEUR [USDEUR]( USDGBP [USDGBP]( USDJPY [USDJPY]( Asian stocks tumbled on Monday amid signs of a deepening crisis in the financial system, lingering fears of a global recession and anxiety ahead of a Federal Reserve meeting this week. Regulators in Asia issued reassuring statements that their banking systems remained robust and stable after an historic state-backed rescue of troubled lender Credit Suisse by Swiss rival UBS Group. In addition, New York Community Bank agreed to buy a significant chunk of the failed Signature Bank in a $2.7 billion deal. The U.S. Federal Reserve and other major central banks announced coordinated measures to improve banks' access to dollar liquidity. Deepening risk aversion benefited the dollar and gold breached the $2,000 an ounce threshold, while oil extended last week's losses on demand worries. Chinese stocks fluctuated before closing lower as the country's central bank left its interest rates unchanged but cut the CRR by 25 basis points in an effort to spur growth. The Shanghai Composite Index dropped 0.5 percent to 3,234.91. Hong Kong's Hang Seng Index plunged 2.7 percent to close at 19,000.71, with HSBC Holding shares falling more than 6 percent. Japanese shares fell sharply amid worries about a potential global banking crisis and key inflation data for February due this week. The Nikkei 225 Index tumbled 1.4 percent to 26,945.67, while the broader Topix closed 1.5 percent lower at 1,929.30. Banks Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group fell around 2 percent each. Seoul stocks ended notably lower, with the Kospi finishing down 0.7 percent at 2,379.20 on worries about the financial soundness of the global financial system. Australian markets opened the week lower, with banks leading losses. The benchmark S&P/ASX 200 index slumped 1.4 percent to 6,898.50, while the broader All Ordinaries Index settled 1.4 percent lower at 7,085.10. Healius soared 8.3 percent after receiving a A$1.52 billion takeover offer from Australian Clinical Labs. --------------------------------------------------------------- Do you have a full view of the market? Level 2 lets you see all of the orders to buy and sell shares, allowing you to see what is really going on in the market. If you don?t have this in your trading toolkit, you?re at a serious disadvantage. [Learn More / Upgrade]( --------------------------------------------------------------- Commodities Crude oil futures are falling $0.62 to $66.12 a barrel after tumbling $1.61 to $66.74 a barrel last Friday. Meanwhile, after soaring $50.50 to $1,973.50 an ounce in the previous session, gold futures are climbing $16 to $1,989.50 an ounce. On the currency front, the U.S. dollar is trading at 131.37 yen versus the 131.85 yen it fetched at the close of New York trading on Friday. Against the euro, the dollar is trading at $1.0712 compared to last Friday?s $1.0670. --------------------------------------------------------------- To unsubscribe from this news bulletin or edit your mailing list settings click [here](. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +1 888-992-3836. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49