Risk aversion dominates sentiment in financial markets

US Futures tumble and Treasury yields plunge

On Monday, the Nasdaq 100 futures saw an increase of over 1%, while the S&P 500 remained stable around the 3870 mark. As the Silicon Valley Bank's collapse continued to impact markets, investors reduced their expectations of Federal Reserve rate hikes, resulting in a significant drop in Treasury yields. The yield on the two-year Treasury note declined by 33 basis points to 4.20%, marking the sharpest three-day decline since the Black Monday crash in October 1987. Meanwhile, the 10-year yield fell to 3.50%, a level not seen since February 3rd.

Silicon Valley Bank updates

HSBC, headquartered in London, has acquired the UK division of Silicon Valley Bank, which collapsed in the US. The Bank of England reassured depositors on Monday that their funds with SVB UK are secure following the acquisition, and all SVB services will continue to operate normally without any noticeable changes for customers.

Gold

Global markets are currently experiencing a state of panic and increased risk aversion, leading to a rise in demand for gold as a safe-haven asset. As a result, gold prices have continued to climb, rising 1.26% to reach $1890 per ounce during today's trading. Since the start of the week, gold prices have risen by almost $20. The recent bankruptcy declarations by multiple US banks have contributed to gold's increase in value, as investors seek safer investment options.