Mohicans markets：MHM Today News

☆ At 22:00, Federal Reserve Vice Chairman Barr and FDIC Chairman delivered testimony on the collapse of Silicon Valley Bank and Signature Bank.

☆ At 22:30, the United States will announce its EIA crude oil inventory for the current week. If the data confirms that crude oil inventory unexpectedly recorded a decrease, it may help oil prices continue to rise.

Market Overview

On Tuesday, as concerns about the banking crisis eased, the US dollar index closed negative for the third consecutive day, closing 0.39% lower at 102.43. US bond yields rose, while 10-year US bond yields fluctuated narrowly to close at 3.571%; The yield on two-year US Treasuries, which are more sensitive to interest rate policy, remained above 4% to close at 4.080%. The US dollar Libor rose to 5.16% in three months before the US market, the highest level since 2007.

Spot gold recovered most of its losses on Monday and returned above $1970, ending up 0.87% higher at $1973.68 per ounce. Spot silver rose more than 1% during the day and ended up 1.09% at $23.33 per ounce.

Affected by the unexpected decrease of API crude oil inventory and the interruption of Turkey's supply, crude oil continued its rising trend on Monday. WTI crude oil stood above $73, and finally ended up 0.97% at $73.55/barrel, while Brent crude oil ended up 0.81% at $78.35/barrel.

The US stock index ended down 0.12%, the Nasdaq index ended down 0.45%, and the S&P 500 index ended down 0.16%. Popular Concept stocks bucked the trend and strengthened, with Alibaba closing up about 14%, its biggest gain since June 2022. Ideal Auto closed up about 7%, while Baidu closed up about 5%. The US stock market of Silicon Valley Bank closed down 99%, while Signature Bank closed down 68%. Two companies with a market value of 10 billion US dollars have a combined market value of only 30 million US dollars after closing. In addition, both Futu securities and Interactive Brokers have shown that American Silicon Valley Bank and Signature Bank can only close positions and cannot build positions.

European stocks closed higher across the board, with Germany's DAX30 index up 0.09%, the FTSE 100 index in the UK up 0.17%, France's CAC40 index up 0.14%, and Europe's Stoxx 50 index up 0.09%.

Market Focus

1. The UK raised the threat level of terrorist attacks in Northern Ireland from “significant” to “serious”.

2. Biden: banking crisis is not over; Goldman Sachs: concerns about banking stress seem to have subsided.

3. Federal Reserve Bullard: regulation is sufficient to solve the financial stress, the Federal Reserve rate hikes only for inflation.

4. Federal Reserve vice chairman of financial regulation: it is necessary to implement stricter capital and liquidity standards for banks with assets of more than $100 billion.

5. Silicon Valley Bank U.S. stocks closed down 99%, Signature Bank closed down 68%, two companies that once had a market cap of $10 billion, closing with a combined market cap of only $30 million.

6. CFTC Chairman talked about Binance and said that this appears to be a very clear case of tax evasion and needs to be acted upon quickly as it is ongoing fraud.

7. The budget of Canadian Prime Minister Justin Trudeau's government shows a projected deficit of C$43 billion for fiscal year 2022-23 and C$40 billion for fiscal year 23-24.

Geopolitical Situation

Conflict Situation：

1. Russian Defense Ministry: Air defense forces intercepted a land-launched small diameter guided missile (GLSDB) for the first time.

2. Russian Defense Ministry: Russian troops eliminated 468 Ukrainian servicemen in one day during the special military operation in Ukraine.

3. Russian Defense Ministry: In the direction of Donetsk, the Ukrainian army lost up to 240 servicemen and mercenaries, 3 infantry fighting vehicles, 3 armored transport vehicles, 2 armored fighting vehicles, 4 vehicles and 1 D-30 howitzer in one day.

4. Explosions were heard in Kiev, Ukraine, where air defense systems were activated and several Shahid drones were destroyed.

5. The Ukrainian Army formed three new strike companies, which will deploy Ukrainian-made drones.

6. The Ukrainian Armed Forces have cumulatively destroyed more than 1,500 Orlan-10 of the Russian Army.

Energy Situation：

1. Ukraine is ready to resume electricity exports to the EU in the event of a surplus of electricity exports.

2. The Italian government passed a 4.9 billion euro decree on energy bill subsidies.

Institutional Perspective 

01

Goldman Sachs

Former Goldman Sachs chief economist Jim O'Neill said the BRICS countries should expand and work to counter the dollar's dominance.

02

SOCIETE GENERALE

Societe Generale: French police are conducting a search campaign at the Bank's headquarters.

03

MUFG

Mitsubishi UFJ: G10 commodity currencies still face downside risks in the short term.

On March 27 -- G10 commodity currencies are underperforming due to heightened banking concerns. Economists at Mitsubishi UFJ Financial Group said in a report that G10 commodity currencies still face downside risks in the short term. The tightening credit environment in the banking sector will pose downside risks to global growth. However, a stronger-than-expected rebound in Chinese demand later this year is expected to boost commodity currencies.