14 March 2023
Markets are reacting to a significant event that has taken place in the US banking sector. For example, shares of large European banks and Brent oil have already fallen significantly in price.
On Friday, US financial regulators seized Silicon Valley Bank's assets as the bank could not cover losses from the sale of assets, which, in turn, reacted to higher interest rates. Panic among investors led to a rapid collapse: they began to urgently withdraw their deposits.
In addition, stablecoins have fallen significantly in price and decoupled from the dollar.
After that, the US Federal Reserve held an extraordinary meeting on Sunday, March 12, and announced measures to support depositors. Later, regulators closed New York's Signature Bank to prevent a further chain reaction. However, sources report a strong drop in the shares of another bank in the premarket — First Republic Bank.
What will happen next?
Analysts are in no hurry to announce an unequivocal scenario — some believe that the global economy will get off with fright, while others do not rule out a new global crisis. The situation is uncertain, and many decisions will be made in hot pursuit and will depend on the degree of panic.
What you can do?
Follow the news and keep your finger on the pulse!
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Good luck in trading!
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