Yazar: Geoffrey Smith
Investing.com – Chinese stocks in decline. The central bank reportedly told banks to reduce lending. Thanks to the cryptocurrency universe, and it’s now worth $ 2 trillion. US stocks will hold their place after Monday’s reopening trade sent the indices to an all-time high. Swiss credit (SIX 🙂 bank fired its top executives after the Greensill and Archegos disaster. Oil prices soared following the surprise production increase of OPEC +.
Here’s what you need to know in financial markets on Monday, April 6th.
1.China banks restrict on loans
According to Bloomberg sources, China’s central bank asked the country’s largest commercial banks to reduce their loans after the increase in loans in the first two months of the year. This demand was Beijing’s last attempt to reduce debt, which increased last year in the first wave of the epidemic, as local authorities struggled to support growth.
While the rest of the world rose like Wall Street, China’s major stock indices fell after this development. It fell 0.4% and 0.7%.
According to Bloomberg, the People’s Bank of China wants new loan volumes to be approximately the same as last year. This means loan growth will drop to 11%, but still quite a big increase for a country that saw private and public debt 280% of GDP last year.
2.Crypto saw $ 2 trillion
The market cap of the cryptocurrency universe saw $ 2 trillion for the first time, aided by XRP’s rise by 35% to a three-year high.
The blockchain, which is at the center of emerging decentralized finance (DeFi) initiatives and applications, also saw an all-time high, up 3%.
With the cooling of the digital art craze called NFT, these developments took place, says JPMorgan (NYSE 🙂 analysts and notes that the flows to and from a peak that was 10 times higher at the end of last year to $ 50 million per week.
Central banks are also developing their own digital currencies: China began testing cross-border transactions using the digital version of the yuan over the weekend – the first for a major central bank in the world.
3. Stock markets will open low; eyes on JOLTS and the Red Book
US stock markets will open low on Tuesday. It hit record highs on Monday, with optimism about the reopening of the economy. This rally was partly due to the spread effect of Friday’s work report. The US economy created 900,000 jobs in the month until mid-March.
It dropped 32 points, lost 0.2% and 0.3%.
The job report sparked interest in the job opportunities survey. The Red Book will share updates from the retail industry. Among the stocks that may be of interest are Carnival (NYSE :), which will share its earnings, and the Norwegian Cruise Line (NYSE :), which requested approval from the US health authorities to resume cruises on July 4th.
4. Minds change at Credit Suisse
Credit Suisse (NYSE 🙂 shifted top management after the twin fiasco that caused billions of dollars in losses last month. It also cut its dividend by two-thirds while suspending its stock buyback program.
The bank said its investment bank manager Brian Chin and Senior Risk and Compliance Officer Lara Turner will be leaving with a number of lower-level executives.
Credit Suisse said it expects $ 4.7 billion in losses due to its relationship with Archegos Capital Management. It also reportedly faced a $ 1 billion loss from supply chain finance expert Greensill Bank, who had collapsed.
5.Oil on the rise: STEO, Iran talks expected
Crude oil prices increased its earnings with the expectations that the US and Chinese economies will continue to support the recovery in global demand.
Prices were down 4% as the market digested OPEC +’s unexpected decision to increase production over the next three months.
While it was $ 60.00 with an increase of 2.3%, it increased by 2.1% to $ 63.47.
On Tuesday, the focus will be on the progress of the US government and indirect talks between the US and Iran in Vienna.