Credit Suisse (Credit Suisse) admitted that there were major missing financial reports in the past two years, dragging down the stock price. After the stock price plummeted, investors were once again worried about the outbreak of a comprehensive banking crisis.dollar indexOn Wednesday (15th), the stock price surged more than 1%.
ICE, which tracks the dollar against six major currencies, in late U.S. trade dollar index (DXY) rose 1.1 percent to 104.74.
When Credit Suisse released its full-year financial report on Tuesday, it pointed out that the financial reporting procedures for 2020 and 2021 had “Material Weakness” (Material Weakness), saying that internal controls have failed to work, and client capital outflows have not yet been reversed.
Bipan Rai, head of foreign exchange strategy for North America at CIBC Capital Markets, said the market is worried about whether this will become a comprehensive problem, and it does look like the central bank is in a dilemma.
However, Mark Stoeckle, chief executive and senior portfolio manager at Adams Funds, sees Credit Suisse’s woes as distinct from Silicon Valley Bank and Signature Bank’s years of well-known mismanagement, which still present nasty unknowns for the market.
Federal funds futures, which reflect the bank’s overnight lending rate, plunged on Wednesday, with the contract price reflecting an expected benchmark interest rate of 3.62% in December, showing that the market expects the Fed to cut interest rates before the end of the year. In addition, the rate-sensitive 2-year Treasury yield fell to 3.8%. The CME Group’s FedWatch tool showed that the market sees the probability that the Fed will not raise interest rates at next week’s meeting rose to about 50%.
“With regional banks playing a key role in U.S. credit expansion, the Fed will not raise interest rates next week, and both long and short-term interest rates may have peaked in this cycle,” said Torsten Slok, chief economist at Apollo Global.
Worries about Credit Suisse’s finances caused the European banking index to record its biggest one-day drop in more than a year, and at the same time led to a sharp drop in European and American bond yields. Swell is suspicious.
EURIn the intraday session, it once fell by about 2% to a low of more than two months. Before the deadline, the decline has converged, but it still fell 1.4% to $1.0576.GBPIt fell 0.77% to $1.2054.
The turmoil in the banking sector changed money markets’ bets on a rate hike from the European Central Bank (ECB). The market is currently pricing in a 60% chance of the ECB raising interest rates by 1 yard on Thursday, much lower than the 90% chance earlier in the day.
Simon Harvey, head of foreign exchange analysis at Monex, believes that the Credit Suisse news has caused bank stocks to be hit hard, and the stock sell-off will only reignite concerns about financial stability.
As risk sentiment weakens,Australian dollarDepreciated nearly 1 percent to $0.6615,source of stringIt fell 0.7 percent to $0.6187.
Safe-haven currencies were mixed.swiss francIt fell 2% against the dollar to 0.9327 Swiss francs to the dollar,JPYAgainst the dollar, it rose nearly 0.7 percent to 133.39 per dollar JPY。
As of about 6:00 on Thursday (16th) Taiwan time Price:
- dollar indexCall 104.7512. +1.0329%
- EURExchange rate against US dollar (EUR/USD) 1 EURAgainst $1.0576. -1.4536%
- GBPExchange rate against USD (GBP/USD) 1 GBPAgainst $1.2053. -0.8310%
- Australian dollarExchange rate against U.S. dollar (AUD/USD) 1 Australian dollarAgainst $0.6617. -0.9431%
- US dollar againstCanadian Dollars (USD/CAD) exchange rate quoted 1 US dollar to 1.3762 Canadian Dollars。+0.5774%
- US dollar againstJPY (USD/JPY) exchange rate quoted 1 US dollar to 133.35 JPY。-0.6556%