On Monday, 21st March 2023, the US equities closed with gains | Forex Trading - RichDadph

On Monday, 21st March 2023, the US equities closed with gains following the purchase of Credit Suisse by UBS, and the support by major central banks to increase market liquidity. The Dow climbed 1.2%, the S&P 500 rose 0.9%, and the Nasdaq increased 0.4%. Under the $3.23 billion deal, Credit Suisse’s Additional Tier-1 (AT1) bondholders will lose their investments. In contrast, shareholders will retain some value, which is unconventional as equity holders are typically higher risk than bondholders. The deal includes a liquidity assistance of CHF 100 billion and CHF 9 billion in loss guarantees from the Swiss National Bank. First Republic’s shares plummeted 47%, even after receiving a $30 billion lifeline from major US banks, due to S&P Global’s downgrade of the bank, which raised liquidity concerns. The focus is now on the Federal Open Market Committee’s (FOMC) rate decision scheduled for the next day, and some analysts believe a 25 basis-point hike is the most likely course of action. The Japanese Yen increased due to UBS’ takeover of Credit Suisse, and investors turned to government bonds. Yields on 10-year US Treasury notes were down by three basis points to 3.365% on Monday, and crude oil prices increased over 1% overnight.





#DanielAng #CreditSuisse #UBS #CentralBanks #FederalOpenMarketCommittee #FirstRepublic