Stocks fall worldwide on U.S. recession, banking and debt-ceiling risks

Equities dropped in the U.S., Asia and Europe on Tuesday as a combination of recession, banking, and debt-ceiling risks facing the world’s largest economy came together and dented the appetite for risk-taking. The decidedly risk-off sentiment began in Asian markets outside of Japan after California’s First Republic Bank reported a disappointing 41% first-quarter drop in deposits in an announcement released late Monday, reigniting worries about the U.S. banking system.

Within the S&P 500 index, energy, materials, industrials, and information technology companies were getting pummeled harder than the financial sector through afternoon trading. In addition, he said, weak tax receipts in April are bringing forward the possibility that the U.S. might reach the so-called X-date in June, after which Treasury may not be able to pay all the U.S. government’s bills. That would be earlier than expected — which could lead to an “extreme” outcome because “you could have a government shutdown or financial turmoil if the government selectively defaults on its debt, which is unprecedented.

In the Treasury market on Tuesday, investors added the 1-month T-bill TMUBMUSD01M to the bucket of very short-dated maturities they are avoiding because of the potential fallout from a debt-ceiling fight. They sold off 1-month bills aggressively, sending the corresponding yield soaring to around 3.68% in the afternoon.

France Dernières Nouvelles, France Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

High LNG stocks in North Asia, weak demand leads to more storage at seaVolumes of liquefied natural gas (LNG) stored at sea have increased on an annual basis this month, driven by more vessels in Asia amid high inventories and slow spot demand in Japan, China and South Korea, analysts say.
La source: Reuters - 🏆 2. / 97 Lire la suite »

Asia stocks off to slow start in earnings-rich weekAsian shares started cautiously in a week packed with economic data and central-bank meetings.
La source: Reuters - 🏆 2. / 97 Lire la suite »

Asia stocks in pensive mood for earnings-packed weekAsian shares started cautiously in a week packed with economic data and central-bank meetings.
La source: Reuters - 🏆 2. / 97 Lire la suite »

Stocks are trading oddly well into this earnings season, but that could pose a near-term risk to equities, warns Morgan Stanley’s WilsonA surprisingly good start for the U.S. stock market into the first-quarter earnings season poses a near-term headwind for equities given the pessimistic...
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

US Stocks Fall After Mixed Earnings; Bonds Rise: Markets WrapUS equities declined along with European stocks as investors scrutinized a flood of earnings reports for clues on the outlook for corporate profits amid high interest rates and slowing economic growth.
La source: markets - 🏆 324. / 59 Lire la suite »