Regulators to review their policies in a bid to prevent future collapses, though they reckon the overall financial system remains sound
Regulators to review their policies in a bid to prevent future collapses, though they believe the overall financial system remains soundTraders work at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange in New York City, US, in this March 16 2023 file photo. Picture: BRENDAN MCDERMID/REUTERS
With a little more stability returning to the banking sector, investors felt confident enough to ditch some of their recent safe-haven purchases, meaning the price of bonds and gold edged lower, as did the dollar. Nevertheless, the concern hasn’t evaporated. Federal Reserve governor Philip Jefferson said on Monday that stress among small banks could hit small businesses hardest.
“It may not be until after month-end, possibly even after the Easter break, before it comes clear how much of the rebound in battered bank stocks and risk assets has been to do with those quarter-end flows, short-covering and mean reversion trades, rather than a genuine sense that the worst has past for the banking sector,” Ostwald said.
“We do not expect this to be a hurricane that pushes the economy into recession and forces aggressive Fed easing,” they said in a note on Tuesday.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Global stocks rise as US regulators vow to prevent future banking collapsesThe dollar slides, US treasury yields rise, and oil prices jump as uncertainty continues to grip global markets
Read more »
Dollar was firm on Monday as Sterling loses outThe dollar was firm on Monday, while the yen hovered near its seven-week peak as regulators rein in worries over global banking system.
Read more »
Gold rises as dollar slips, but risk appetite limits gainsWhile regulators seek to allay fears over the global banking system, bullion remains a resolute safe-haven in a rolling risk environment
Read more »
South Africa shoots itself in the foot with Russian romance, says XA Global Trade Advisors bossDonald MacKay, CEO of XA Global Trade Advisors, warns that the West might ditch SA as a trade partner over its foreign policy.
Read more »
Flight to quality boosts global premium office rentsAfrica is recording some of the biggest increases, with Lagos, Accra and Nairobi topping the continent’s rankings
Read more »