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Market Instability

All articles tagged with #market instability

finance2 years ago

Stock Prices Soar as Key Driver Surges: Morning Brief

Despite market instability, corporate earnings, which are the most important long-term driver of stock prices, have been improving. Analyst estimates for the third quarter, fourth quarter, and remainder of 2023, as well as 2024 full-year forecasts, have been raised during July and August, contrary to the usual trend of downward revisions. While earnings for S&P 500 companies have declined in Q2, analysts are growing more optimistic about the outlook for the rest of this year and into 2024.

via Yahoo Finance|
#analyst-estimates#corporate-earnings#earnings-recession
finance2 years ago

"Regulators Affirm Soundness of U.S. Banking System Despite Recent Failures"

The US banking system remains "sound and resilient" despite stress on some institutions, according to the US Treasury's Financial Stability Oversight Council (FSOC). The multi-regulator body of financial regulators, led by Treasury Secretary Janet Yellen, met to discuss current conditions in the banking sector and noted that while some institutions have come under stress, the US banking system remains sound and resilient. The meeting came as markets continued to seesaw amid concerns that a two-week-old banking crisis sparked by the failures of Silicon Valley Bank and Signature Bank could worsen, spreading more runs on smaller banks.

via Reuters|
#bank-failures#finance#financial-stability-oversight-council
finance2 years ago

Swiss Banks Struggle for Survival Amidst Global Market Turmoil

First Republic Bank's credit rating was cut by Standard & Poor's, causing a 47.11% drop in its stock. JPMorgan Chase is advising the bank on strategic alternatives to stem the rout. Meanwhile, U.S. markets staged a relief rally, and Asia-Pacific markets rose on Tuesday. However, there are signs of increasing market instability, with regional banks reducing their loans and the Fed facing a difficult decision on interest rates. JPMorgan Chase's chief market strategist warned of a possible "Minsky moment," a sudden market collapse after a long period of aggressive speculation.

via CNBC|
#credit-suisse#finance#first-republic-bank
finance2 years ago

UBS's Acquisition of Credit Suisse Sparks Controversy.

UBS' planned takeover of Credit Suisse has calmed the market slightly, with UBS shares rising 1.02% and banking stocks in the pan-European index, Stoxx 600, up 1.3%. However, owners of Credit Suisse's additional tier one bonds, worth $17 billion, are now worth nothing, and Saudi National Bank confirmed it lost around 80% of its investment in Credit Suisse, a loss of over $1 billion. Meanwhile, JPMorgan Chase is advising First Republic Bank on strategic alternatives such as raising capital or attempting a sale, after Standard & Poor's cut its credit rating to B+ from BB+. Analysts warn that a Minsky moment could be on the horizon, as market instability increases and the banking crisis causes regional banks to reduce their loans.

via CNBC|
#banking-sector#credit-suisse#finance