Wasn't Deutsche Bank stress a bit overdone?! | MarketTalk: What’s up today? | Swissquote

Show notes

Sentiment is mixed, as the Deutsche Bank selloff revived the banking stress on Friday – DBK is doing better this morning – phew!
The German 2-year yield fell and the US 2-year yield tanked to 3.55%, the lowest since last September.
Activity on Fed funds futures gives more than 85% chance for a no rate hike in May.
Besides the Federal Reserve (Fed), the Bank of Canada (BoC) and the Reserve Bank of Australia (RBA) are also seen as central banks that could rapidly go back to cutting the interest rates.
And the European Central Bank (ECB) could well be next on that list; if stress over DBK gets worse, we could well see the ECB rate hike expectations hammered. And that could put the single currency under a renewed downside pressure.
For equities, it looks like the falling yields overweigh the recession fears right now, even though the yields are falling due to recession worries which are triggered by the banking crisis which should restrict credit.
But how much they will matter depends on what happens on the… banks front.
Listen to find out more!