1) FSS says market outlook is increasingly positive as global market relaxes from banking crisis
Finansia Syrus Securities (FSS) expected Thailand’s SET Index to move in a sideways to sideways-up trend within the range of 1,585-1,600 points. The situation is increasingly better as the market relaxed from the U.S. banking crisis after the First Citizens BancShares had bought SVB. Meanwhile, Brent crude bounced back sharply by 3% as Turkey ceased to pump oil from Kurdistan that represents 0.5% of global oil supply.
2) First Citizens’ stocks jump 54% after acquiring SVB
The share price of First Citizens Bancshars skyrocketed 54% on Monday after it took over the Silicon Valley Bank’s $56.5 billion in deposits as well as $72 billion in loans at a discount of $16.5 billion.
The FDIC will help finance this deal with a $35 billion loan & $70 billion credit line to help cover pot depo flight.
First Citizens has approximately $109 billion in assets and $89.4 billion in total deposits.
3) JPMorgan recommends investors to remain defensive as banking woes persisted
JPMorgan’s strategist Marko Kolanovic recommended investors to stay defensive as banking woes persisted and downward revisions to economic forecasts are expected to further pressure market sentiment in the months ahead.
The strategist favors sectors that benefit from lower bond yields, such as the technology sector.
In the meantime, JPMorgan warned that there are stresses growing in commercial real estate.
The firm sees the path to a recession taking hold gradually, and predicts that central banks will not ease monetary policy until economic growth is thwarted.
