{"id":57320,"date":"2023-03-20T18:09:13","date_gmt":"2023-03-20T07:09:13","guid":{"rendered":"https:\/\/icmarkets.eu\/blog\/?p=57320"},"modified":"2025-11-11T19:20:51","modified_gmt":"2025-11-11T08:20:51","slug":"monday-20th-march-2023-ubs-credit-suisse-deal-fails-to-lift-asian-markets-amid-contagion-fears","status":"publish","type":"post","link":"https:\/\/icmarkets.eu\/blog\/fundamental-analysis\/monday-20th-march-2023-ubs-credit-suisse-deal-fails-to-lift-asian-markets-amid-contagion-fears\/","title":{"rendered":"Monday 20th March 2023:  UBS-Credit Suisse deal fails to lift Asian markets amid contagion fears"},"content":{"rendered":"<h3><span style=\"font-weight: 400;\">Global Markets:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Asian Stock Markets : Nikkei down 1.42%, Shanghai Composite down 0.48%, Hang Seng down 3.25%, ASX down 1.38%<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Commodities : Gold at $1992.50 (+0.96%), Silver at $22.57 (+0.47%), Brent Oil at $70.95 (-2.77%), WTI Oil at $65.14 (-2.67%)<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Rates : US 10-year yield at 3.325, UK 10-year yield at 3.301, Germany 10-year yield at 2.145<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">News &amp; Data:<\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) Prelim UoM Inflation Expectations 3.80% vs 4.10% previous<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">(USD) Prelim UoM Consumer Sentiment 63.4 vs 66.9 expected<\/span><\/li>\n<\/ul>\n<h3><span style=\"font-weight: 400;\">Markets Update:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">\u00c2&nbsp;Asian markets fell on Monday despite a weekend rescue deal for Credit Suisse and a coordinated effort by central banks to ease liquidity strains in the global banking system. Investors remained wary of the potential fallout from the collapse of Silicon Valley Bank, which has triggered a confidence crisis in the financial sector.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Hang Seng index led losses in the region, dropping 3% as consumer cyclical stocks weighed on the benchmark. The Hang Seng Tech index also declined 2.8%. In mainland China, the Shanghai Composite traded lower by 0.5%. China left its one-year and five-year loan prime rate unchanged at 3.65% and 4.3% respectively. In Japan, bank shares rebounded 1% after being battered last week, but the Nikkei 225 still fell 1.4%. The Topix was down 0.9%. In Australia, financials slid 1.2 % and dragged down the S&amp;P\/ASX 200 by 1.4%. South Korea\u00e2\u20ac\u2122s Kospi was down 0.4%, while the Kosdaq rose 0.5%.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Over the weekend, UBS said it will buy Credit Suisse for $3.2 billion and assume up to $5.4 billion in losses, in a deal brokered by Swiss authorities to prevent a systemic meltdown. Central banks including the Fed, the ECB and the BOJ pledged to increase their support for liquidity by offering more frequent dollar-swap operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, these moves did not fully assuage market fears of contagion risk as some major banks in Europe are examining worst-case scenarios and looking for stronger signals of support from regulators. Concerns also remain elevated about regional banks in the US that have exposure to Silicon Valley Bank or its clients.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In other markets, crude oil prices fell as demand worries outweighed supply disruptions caused by an attack on Saudi Arabia\u00e2\u20ac\u2122s oil facilities over the weekend. Gold prices rose as investors sought safe-haven assets amid market jitters. The US dollar index weakened as expectations of rate hikes later this year faded amid easing liquidity conditions. The index was down 0.4% at 91.56 against a basket of major currencies.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Upcoming Events:<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Tuesday, March 21, 2023\u00c2&nbsp;\u00c2&nbsp;\u00c2&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 AM GMT &#8211; (AUD) Monetary Policy Meeting Minutes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">10:00 AM GMT &#8211; (EUR) German ZEW Economic Sentiment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (CAD) CPI m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (CAD) Median CPI y\/y<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (CAD) Trimmed CPI y\/y<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (CAD) Common CPI y\/y<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (EUR) ECB President Lagarde Speaks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">02:00 PM GMT &#8211; (USD) Existing Home Sales<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Wednesday, March 22, 2023\u00c2&nbsp;\u00c2&nbsp;\u00c2&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">07:00 AM GMT &#8211; (GBP) CPI y\/y<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:45 AM GMT &#8211; (EUR) ECB President Lagarde Speaks<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">06:00 PM GMT &#8211; (USD) FOMC Economic Projections<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">06:00 PM GMT &#8211; (USD) FOMC Statement<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">06:00 PM GMT &#8211; (USD) Federal Funds Rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">06:30 PM GMT &#8211; (USD) FOMC Press Conference<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Thursday, March 23, 2023\u00c2&nbsp;\u00c2&nbsp;\u00c2&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:30 AM GMT &#8211; (CHF) SNB Monetary Policy Assessment<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:30 AM GMT &#8211; (CHF) SNB Policy Rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Tentative &#8211; (CHF) SNB Press Conference<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:00 PM GMT &#8211; (GBP) MPC Official Bank Rate Votes<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:00 PM GMT &#8211; (GBP) Monetary Policy Summary<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:00 PM GMT &#8211; (GBP) Official Bank Rate<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (USD) Unemployment Claims<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">02:00 PM GMT &#8211; (USD) New Home Sales<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">11:30 PM GMT &#8211; (JPY) National Core CPI y\/y<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Friday, March 24, 2023\u00c2&nbsp;\u00c2&nbsp;\u00c2&nbsp;<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">07:00 AM GMT &#8211; (GBP) Retail Sales m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:15 AM GMT &#8211; (EUR) French Flash Services PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:15 AM GMT &#8211; (EUR) French Flash Manufacturing PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:30 AM GMT &#8211; (EUR) German Flash Manufacturing PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">08:30 AM GMT &#8211; (EUR) German Flash Services PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:00 AM GMT &#8211; (EUR) Flash Manufacturing PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:00 AM GMT &#8211; (EUR) Flash Services PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:30 AM GMT &#8211; (GBP) Flash Manufacturing PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">09:30 AM GMT &#8211; (GBP) Flash Services PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (CAD) Core Retail Sales m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (CAD) Retail Sales m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (USD) Core Durable Goods Orders m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">12:30 PM GMT &#8211; (USD) Durable Goods Orders m\/m<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">01:45 PM GMT &#8211; (USD) Flash Manufacturing PMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">01:45 PM GMT &#8211; (USD) Flash Services PMI<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0Asian markets fell on Monday despite a weekend rescue deal for Credit Suisse and a coordinated effort by central banks to ease liquidity strains in the global banking system. Investors remained wary of the potential fallout from the collapse of Silicon Valley Bank, which has triggered a confidence crisis in the financial sector.<\/p>\n","protected":false},"author":8,"featured_media":62731,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[196,215,339],"tags":[],"class_list":["post-57320","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fundamental-analysis","category-market-analysis","category-recent-posts"],"_links":{"self":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/comments?post=57320"}],"version-history":[{"count":3,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57320\/revisions"}],"predecessor-version":[{"id":62751,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/posts\/57320\/revisions\/62751"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media\/62731"}],"wp:attachment":[{"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/media?parent=57320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/categories?post=57320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icmarkets.eu\/blog\/wp-json\/wp\/v2\/tags?post=57320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}