CNBC Daily Open: After First Republic rescue, fears of contagion are allayed (again)
Publishing timestamp: 2023-03-17 02:36:13
Summary
The European Central Bank has hiked interest rates and reassured the public that it will support banks if needed, following a sell-off in Credit Suisse. While smaller banks may be left out of efforts to protect the banking system, major indexes rallied on Thursday and Asia-Pacific markets rose on Friday. The establishment of a new "Central Financial Commission" in China aims to strengthen the Communist Party's oversight of finance and technology industries. The Federal Reserve is expected to raise interest rates next week, but there is a chance they may pause hikes. Despite fears of a wider meltdown in the banking industry, financial regulators and central banks have used measures to shore up confidence, and consumers and investors are psychologically reassured. Tech stocks had a good Thursday, with Alphabet, Amazon, and Microsoft all rallying. There is a 35% chance of the economy entering a recession in the coming 12 months, up from 25% before the banking crisis happened.
Sentiment: MIXED
Tickers: FRC, AMZN, MSFT, GOOGL, 9626-HK, CSG.N-CH,
Keywords: world markets, interest rates, markets, banks, technology, amazon.com inc, business news, united states, microsoft corp, credit suisse group ag, alphabet inc, bilibili inc, economic events, janet yellen, first republic bank,