First Republic Bank Fails

Monday, stocks rose slightly in Asia, gained 0.5% in Europe, and ended little changed in the U.S. on 10B shares traded. Ho-hum, the third recent regional bank failure (First Republic) spawned little market reaction.

Tuesday, stocks ended little changed in Asia but dropped 1.2% in Europe and 1.4% in the U.S. on 12B shares traded. The VIX shot up 11% to end at 17.78. The 10-Year U.S. Treasury bond yield fell 4% to end at 3.44. Precious metals gained 2% and their miners jumped up 5%. The Dow Jones Industrials ended below the 34,000 benchmark.

Wednesday, stocks rose 0.4% in Europe, but fell 0.3% in Asia and 0.5% in the U.S. on 12B shares traded. Precious metals gained 1%. The S&P 500 index closed below the 4100 level. The FOMC met, increased the interest by 0.25%, and hinted of a pause.

Thursday, stocks gained 0.7% in Asia but lost 0.5% in Europe, and 0.8% in the U.S. on 12B shares traded. The VIX moved up 10% to close at 20.24 and tiptoe back into the fear zone. Precious metals rose 1% while their miners increased twice that amount. The NASDAQ closed below the 12,000 level. This article gives insight into the future of interest rates.

Friday, stocks advanced 0.4% in Asia, 1.0% in Europe, and 1.7% in the U.S. on 11B shares traded. The VIX plummeted 14% to close at 17.19 and return comfortablly to the greed zone. The 10-Year U.S. Treasury bond yield gained 3% to end at 3.45. Precious metals gained 1%. The NASDAQ and S&P 500 indices returned above their respective 12,000 and 4100 levels. Here’s one example why this weekly market summary has ceased reporting monthly the BSL jobs lie. Finally, the Federal Reserve balance sheet declined 59B to 8.50T.

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