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Friday March 24 @ 9:00am
Global Markets on Edge as Deutsche Bank Faces Pressure Amid Renewed Banking Crisis Fears
Matthew
March 24, 2023
“There are no happy endings in history, only crisis points that pass.”
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📈 The Markets Overnight
🌏 Asia: Down a bit
🌍 Europe: Down a lot
🌎 US Index Futures: Down
🛢 Crude Oil: Down a lot
💵 Dollar: Up strongly
🧐 Yields: Down a lot
🔮 Crypto: Down
🌏 Major Global Catalysts
Today, the heads of state from European Union member countries will convene for the Euro Summit to discuss the current economic and financial situation in the region and to collaborate on policy coordination.
DB Deutsche Bank under pressure as their credit default swaps jumped overnight.
💵 Economic Reports and Events Today
Consensus forecasts shown
8:30am Core Durable Goods Orders m/m 0.2%, reported. Change in the total value of new purchase orders placed with manufacturers for durable goods, excluding transportation items.
8:30am Durable Goods Orders m/m 0.4%, reported. Change in the total value of new purchase orders placed with manufacturers for durable goods.
9:45am Flash Manufacturing PMI 47.0 Survey of about 800 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
9:45am Flash Services PMI 50.3 Survey of about 400 purchasing managers which asks respondents to rate the relative level of business conditions including employment, production, new orders, prices, supplier deliveries, and inventories.
📰 Selected Earnings Releases
Consensus Estimates shown
After Hours Today:
None
Pre-Market Tomorrow:
CCL Carnival EPS -0.610 Rev 4.33B
BNTX BioNTech EPS 8.910 Rev 4.39B
🔮 Selected Analyst Ratings Changes
DASH DoorDash JMP Securities Reiterates Market Outperform Maintains 100.00
MRO Marathon Oil Goldman Sachs Maintains Sell Lowers to 24.00
MSFT Microsoft Wells Fargo Maintains Overweight Raises to 320.00
SQ Block Wedbush Reiterates Outperform Maintains 114.00
SQ Block Atlantic Equities Downgrades to Neutral Lowers to 70.00
📉 Stocks In Play
DB Deutsche Bank Down 8% on contagion fears.
UEC Uranium Energy Down 9% on Kerrisdale Capital short report.
ATVI Activision Blizzard Up 6% as Microsoft merger moves closer to approval in the UK.
💬 Commentary
Yesterday morning, the markets started with a nice rally as the bulls attempted to take control after the previous days weakness. However, this upward trend was short-lived, as the bears regained control by lunchtime and initiated a relentless selling spree that continued well into the late afternoon. While a late-day short covering rally managed to push the senior indices back into the green, it is important to note that yesterday's selling was particularly bearish in nature.
Unfortunately, the European banking sector is facing more trouble with Deutsche Bank and the fear of contagion in the spotlight this morning. This is having a negative impact on global markets and as a result, US equities are likely to open with a significant gap down, with all of the indices (excepting the Nasdaq which continues to strongly outperform) trading well below yesterday's low. In particular, the Russell 2000 small caps index is currently at levels that have not been seen since October. Although there may be some technical support levels just below current prices, given the volatile nature of this week and the fact that it is Friday, it is unlikely that nervous investors will be able to mount a strong defensive response today. Therefore, it would be unwise to expect any significant changes or miracles today.
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