Fitch: * FITCH: RECENT BANKING SECTOR TURMOIL COULD SPEED UP TIGHTENING OF REGULATIONS FOR US LARGE REGIONAL BANKS. * FITCH: PERMANENT WRITE-DOWN OF CS'S AT1S BEFORE FULL LOSS ABSORPTION BY SHAREHOLDERS DOESN'T APPEAR TO BE LIKELY TO BE REPEATED BY OTHER MAJOR REGULATORS.
By Saqib Iqbal Ahmed. The dollar slipped to a 1-week low against the euro on Thursday as German inflation data helped lift the common currency and as concerns over the banking sector receded. Inflation eased significantly in Germany in March on the back of lower energy prices but was above forecasts, adding pressure on the European Central Bank to further tighten its monetary policy.
Two-year Treasury yields
rose to one-week highs on Thursday as investors grew more
confident that recent stress in the banking sector would be
contained, but remained cautious about the impact that ...
China's flagship carrier Air China Ltd (AICAF) posted record annual losses of 38.6 billion yuanon Thursday as the country's now-abandoned zero-COVID policy led to a plunge in demand. Shanghai-based China Eastern Airlines Corp Ltd on Thursday said it had lost a record 37.4 billion yuan in 2022, wider than its 2021 loss of 12.2 billion yuan.
Wall Street readied to join rising global shares which hit their highest level in three weeks on Thursday, underpinned by hopes of that turmoil in the banking sector is over as investors switch to reviewing their end of quarter positions. Receding inflation in Spain and Germany helped government bonds in the euro zone.
The euro rose against the U.S. dollar on Thursday as investors switched focus to inflation for more hints on central banks' next rate moves, as concerns over the banking sector receded. Inflation is expected to ease significantly in Germany in March on the back of lower energy prices, preliminary data from six economically key states in the country showed on Thursday.
HSBC (HSBC) is expecting the eurozone economy to grow 0.6% in 2023 from its previous estimate of being flat, citing easing supply chain issues, falling wholesale energy costs and a likely slowdown in inflation. The recent turmoil in the banking sector may trigger a slowdown later this year as financial conditions tighten, the bank said in a note on Thursday.
A steadier tone in global stocks continued on Thursday as investors hoped the banking sector had turned a corner on its recent turmoil to help markets end the quarter on a positive note. The dollar and crude oil prices were stable, with calmer markets allowing investors to focus more on the economy, as Spanish inflation fell more than expected in March.
The U.S. dollar and euro steadied on Thursday as concerns over the banking sector receded, while investors switched focus to inflation for more hints on central banks' next rate moves.
The U.S. dollar was a tad higher on Thursday as receding concerns over the banking sector bolstered risk sentiment and investors switched their attention to the Federal Reserve's battle against inflation. The dollar index, which measures the currency against six major peers, rose 0.019% to 102.65, after gaining 0.19% overnight.
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