Banking Crisis together with US CPI in focus
European stocks in the mix
DAX back above key support $15,067
Gold bulls retreat ahead of US CPI
US Futures rise
After SVB Bank collapse and the tumbling of the stock markets, CPI readings are due today from the US. Putting investors off a pedestal.
The DAX was seen attempting to recover losses above $15,000. While the UK’s FTSE continued to drop near $7,524.
As markets process the increased uncertainty, volatility remains high. At the same time, banks are responding with new acquisitions and lending activities. JP Morgan, for example, is providing funding to the First Republic Bank to help them meet their clients' withdrawal demands.
Gold prices were inching lower at the start of the trading day as the dollar rebounded ahead of important data to be released later in the day.
Oil prices sharply dropped overnight as SVB continues to shatter sentiment, Brent was hovering near $78, down 8 dollars from last week’s highs near $86.
WTI too, continued to plunge today near $72. CPI figures will have further implications on oil prices, keeping the black gold commodity vulnerable to the next FOMC decision.
US futures were in the green territory in the European session, the Dow Jones was trying to gather momentum 31,967 after dropping to 31,525 in yesterday’s session, while the S&P was back above 3,870.
2-year treasury yields were also seen dropping below the 4% mark this morning.