US Open: Stocks fall as banking fears return

US futures

Dow futures -1% at 31780

S&P futures +0.5% at 3911

Nasdaq futures -0.75% at 12650

In Europe

FTSE -1.58% at 7368

Dax -2.32% at 14858

Bank worries return
The market expects a rate cut in June
EUR/USD drops almost 1% on recession fears
Oil tumbles on delayed SPR refill

CS & UBS to be investigated by DoJ

US futures are falling in risk of trade amid renewed concerns over the banking sector. reports that Credit Suisse and UBS are among lenders that are being investigated by US Justice Department to see whether the banks helped Russian ugly arks evade sanctions. Deutsche Bank has also seen its share price slump by over 10% as contagion fears continue to grips the market.

Deutsche Bank said it would redeem a Tier 2 subordinated bond early, well this move is usually in order to bring confidence the sell off suggests that it has done quite the opposite.

The renewed turmoil in the sector has fueled the safe haven trade and raised bets that major central banks won't be able to tighten monetary policy much further. Demand for bonds has jumped pulling yields lower.

Earlier today the market was fully pricing in at 25 basis point rate cut by June even though fed chair Jerome Powell insisted earlier this week that rate cuts were not the base case for the Federal Reserve

Corporate news

Deutsche Bank is falling over 10% pre market after a record surge in fit it's credit default swaps meaning the cost of insuring against the risk of default surged.

block formerly known as square is falling pre market adding to 15% losses yesterday after short sellers Hindenburg research accused the firm of lax compliance and avoiding regulation.

Chevron ExxonMobil are both falling sharply as crude oil prices slumped to the lowest level in a week as the USA government said that it would take years to refill strategic reserves.

Where next for the Nasdaq ?

12950 proved to be a difficult level to cross this week and the NASDAQ has eased back to current levels around 12650. The rise above resistance at 12465, in addition to the bullish RSI and the golden cross signal with the 50 sma crossing above the 200 sma, keep buyers hopeful of further gains. Sellers could look for a move below 12550 yesterday’s low to test 12460 the March 6 high. A fall below here exposes the December high at 12215. Buyers need to rise above 12950 to create a higher high and bring 13200, the August 26 high, into play.

FX markets – USD falls, GBP rises

The USD is rising on safe haven flows, even as U.S. Treasury yields fall lower. ongoing banking woes and rising recession fears see investors favouring safe havens such as the USD and the JPY.

EUR/USD is falling despite upbeat PMI data from both Germany and the eurozone. instead safe haven flows are dominating market movements as concerns over another financial crisis in the eurozone ramp up. Composite PMI data for the eurozone rose to 54.1 up from 52 and ahead of forecasts of 51.9.

GBP/USD is falling in risk off trade and as investors digest stronger than expected UK retail sales but a slightly weaker composite PMI. retail sales surged 1.2%MoM in February, after an upwardly revised 0.9% in January. strong sales could be considered inflationary and will keep pressure on Bank of England to raise interest rates again. The composite PMI eased to 52.2 down from 53.1.

EUR/USD -0.9% at 1.0791

GBP/USD -0.6% at 1.2272

Oil tumbles on recession fears & demand concerns

Oil prices are tanking, dropping over 5% across the past two sessions in risk of trade as banking shares in Europe tumble and after EU S energy secretary Jennifer granholm said that replacing US strategic oil reserves could take years.

A turmoil in the banking sector continues recession fears are rising which is bad news for the oil demand outlook. furthermore the lack of crude buying for refilling spr is makes it a double whammy for the oil demand outlook.

this leaves China to do the heavy lifting, which is helping to limit losses. demand in China the world largest importer of oil is expected to continue ramping up as the country reopens.

WTI crude trades -3.5% at $67.45

Brent trades at -3.4% at $73.30

Looking ahead

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

The products and services available to you at FOREX.com will depend on your location and on which of its regulated entities holds your account.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.