Winners & losers of bank stress & falling yields | MarketTalk: What’s up today? | Swissquote

Show notes

The new market game is being played between two camps: ‘the financial stress and how the authorities are dealing or promising to deal with potential renewed turmoil’ camp, and ‘the recession worries’ camp.
While the recession worries are not entirely bad for the stock valuations – at least in the immediate term, as they pull the yields lower, the financial stress is much less welcome, and there is a much stronger consensus among investors that… financial stress is bad.
The US 2-year yield is now headed to the levels, around 3.80%, that were tested when the SVB collapsed.
On the data front, the US durable goods orders and the flash PMI data will be closely monitored for further signs of potential weakness after the weekly unemployment claims came in below expectations yet again.
For now, though, the falling yields, and the banking turmoil, is a boon for the tech stocks. The FAANG stocks are up by more than 13% since 10 days, and Bitcoin gained up to 50%.
Crude oil shortly spiked above the $70 mark, but saw decent resistance at this level.
In the FX, the lower yields keep a decent pressure on the US dollar’s shoulders, giving other pairs field to extend gains.
gold continues flirting with the $2000 offers, though I still believe that an eventually waning bank stress is a threat of a decent downside correction, which could pull the price of an ounce all the way down to $1900.
Listen to find out more!