24 Hours of Financial Market Uncertainty: Credit Suisse, ECB, TikTok, and Treasury Yields

The financial markets have been in a state of flux over the past 24 hours, with Credit Suisse the latest headline maker. The Swiss bank announced it would borrow up to 50 billion Swiss Francs ($53.68 billion) from the Swiss National Bank on Wednesday.[0] U.S.-listed shares in the bank rallied 6% on the news, while regional banks saw their stocks dip.

Meanwhile, the European Central Bank is set to announce its latest policy decision shortly before U.S. markets open, with a 50 basis point rate hike expected.[1] And the Biden administration has threatened to ban TikTok if China’s Bytedane doesn’t divest its stake in the video-sharing app, sending parent company Snap’s shares up 6% and Meta’s 1.5%.[2]

On the Treasury front, the 10-year yield fell 7 basis points to 3.42%, while the 2-year yield was down by around 10 basis points to 3.292%.[2] First Republic Bank (FRC) meanwhile fell 21.4% after S&P Global Ratings downgraded the regional lender’s credit rating to junk status.[3]

Overall, the markets have seen a mix of volatility and uncertainty over the past 24 hours, and investors will be closely monitoring the ECB decision and any further news on the TikTok situation.

0. “Credit Suisse to borrow up to $54 billion from Switzerland’s central bank” Axios, 16 Mar. 2023, https://www.axios.com/2023/03/16/credit-suisse-borrow-54-billion-switzerlands-central-bank

1. “European stocks close higher following ECB rate hike; Credit Suisse up 19% on central bank backstop” CNBC, 16 Mar. 2023, https://www.cnbc.com/2023/03/16/european-markets-live-updates-stocks-data-news-and-earnings.html

2. “Dow Jones Futures Fall: Credit Suisse Taps Swiss National Bank; First Republic Dives On Sales Report | Investor’s …” Investor’s Business Daily, 16 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-rise-as-credit-suisse-taps-54-billion-from-swiss-national-bank/

3. “Stock Market Today: Stocks Struggle on Credit Suisse, First Republic Bank Concerns” Kiplinger’s Personal Finance, 15 Mar. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-stocks-struggle-on-credit-suisse-first-republic-bank-concerns