Bank crisis worries return
|Fresh bank crisis fears prompted losses in stocks this afternoon, along with changes in central bank expectations, says Chris Beauchamp, chief market analyst at online trading platform IG.
Markets drop as bank fears resurface
“It looks like the banking crisis isn’t solved. Stocks are down heavily today, especially in Europe, as everyone’s struggler-of-choice Deutsche Bank sees its stock fall sharply. This renewed bout of selling shows that the takeover of Credit Suisse hasn’t put a lid on the crisis, and investors will go into the weekend hoping for some more calming words from authorities.”
Turmoil sees chances of another Fed hike slump
“Earlier in the week, the talk was of how wide the gap between Fed and market expectations were. This gulf has got quite a bit wider, with May’s rate hike viewed by traders as an impossibility, and cuts to start shortly afterwards. It’s not usually a sign of calm when the Fed and markets are singing from different hymn sheets, so investors should buckle up and prepare for more volatility ahead.”
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