3/28 (Tue) morning market trends (compared to the previous day)
- NY Dow: $32,432 +0.6%
- NASDAQ: $11,768 -0.4%
- Nikkei Stock Average: ¥27,476 +0.3%
- USD/JPY: 131.5 +0.02%
- US dollar index: 102.8 -0.2%
- 10-year US Treasury yield: 3.53 +4.7%
- Gold Futures: $1,974 -1.3%
- Bitcoin: $27,166 -2.3%
- Ethereum: $1,714 -2.8%
Today’s NY Dow continued to rise and closed at +194 dollars, supported by buybacks of bank stocks. Meanwhile, the Nasdaq turned down on concerns about continued rate hikes, closing at -$55.
US financial holding company First Citizens BankShares has agreed to buy much of the recently insolvent Silicon Valley Bank (SVB), it was revealed yesterday. In response to this trend, US regional bank stocks were bought back, and the stock price of First Citizens soared +53.7%.
First Citizen will assume all of SVB’s deposits ($56 billion) and loans ($72 billion) to its subsidiary, First Citizens Bank & Trust, according to documents released by SVB’s trustee, the FDIC. . The FDIC will acquire First Citizens stock appreciation rights worth up to $500 million.
The deal also includes the acquisition of $72 billion worth of SVB’s assets at a $16.5 billion discount, but the disposal of $90 billion worth of securities and other assets. will remain in the control of the FDIC. SVB’s 17 former branches will reopen as Silicon Valley Bank under First Citizens Bank on the 27th.
The FDIC Deposit Insurance Fund costs associated with the SVB are estimated at about $20 billion.
In addition to SVB’s takeover trend, First Republic Bank, which was feared to be in danger of similar bankruptcy, is considering that the US authorities, including the Fed, will give the bank time to repair its balance sheet. It was reported that the government is considering further measures to support banks, such as expanding emergency lending facilities for banks. First Republic shares are up 11.8% from the previous day.
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Economic indicators (Japan time), remarks by dignitaries
- March 30, 21:30 (Thursday): U.S. October-December Quarterly Real Gross Domestic Product (GDP, Final Value) (Quarterly Change Annual Rate)
- March 31, 21:30 (Friday): U.S. February Personal Consumption Expenditure (PCE Core Deflator) (MoM/YoY)
- March 31, 23:00 (Friday): March University of Michigan Consumer Confidence Index, final figures
- April 3, 23:00 (Monday): March ISM Manufacturing Index
Several senior Fed officials are slated to speak this week, as are U.S. inflation data.
Hawkish St. Louis Fed President James Bullard said on Wednesday that the Fed will likely need to raise interest rates more than expected. Minneapolis Fed President Neel Kashkari said last weekend that the recent banking turmoil has heightened the risk of a recession, but is still predicting the FOMC’s next meeting on May 2-3. said it was too early.
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Some IT/tech stocks retreated due to a sharp rise in US bond yields. Compared to the previous day for individual stocks, NVIDIA -0.9%, c3.ai +0.6%, Big Bear.ai -4.2%, Tesla +0.7%, Microsoft -1.4%, Alphabet -2.8%, Amazon -0.09%, Apple -1.2% , meta-1.5%.
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Cryptocurrency/Blockchain-related Stocks (Year-on-Year Change/Year-to-Week Change)
- Coinbase｜$62.5 (-7.8%/-7.8%)
- MicroStrategy | $238.9 (-6.9%/-6.9%)
- Block | $64.4 (+6.1%/+6.1%)
Coinbase shares fell sharply after the CFTC filed a lawsuit against Binance and its CEO Changpong Zhao (CZ) on the 27th.
The CFTC took issue with the fact that Binance itself, not the US division Binance US, intentionally did not register with the CFTC and provided derivatives trading services in the United States. It calls for a permanent ban on business registration.
MicroStrategy announced last night that it has increased its bitcoin purchases. Acquired 6,455 BTC for $150 million as of March 23rd. The average acquisition price was 23,238. The current Bitcoin holdings have increased to 138,955 BTC.
MicroStrategy repaid its $205M Silvergate loan at a 22% discount. As of 3/23/23, $MSTR acquired an additional ~6,455 bitcoins for ~$150M at an average of ~$23,238 per #bitcoin & held ~138,955 BTC acquired for ~$4.14B at an average of ~$29,817 per bitcoin. https://t.co/ALp9VLkTpt
— Michael Saylor⚡️ (@saylor) March 27, 2023
dollar yen rebound
US dollar = 131.5 yen, up 0.02% from the previous day. The dollar/yen pair appears to have been bought back from last Friday’s low of 129.64 yen as financial turmoil eased and US Treasury yields surged.
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