(New York) The New York Stock Exchange opened higher on Monday, buoyed by the announcement of the acquisition of assets of the bankrupt Silicon Valley Bank by another American regional bank, First Citizens, seen as a new step way out of the crisis in the sector.
By 10:15 a.m. EST, the Dow Jones gained 0.58%, the NASDAQ index gained 0.24%, the S index
During the night of Sunday to Monday, the American Deposit Guarantee Agency (FDIC) indicated that this establishment, whose headquarters is located in Raleigh (North Carolina), would take over all of the deposits and the loan portfolio. of Silicon Valley Bank (SVB).
“During a banking crisis, you approach the weekend worried about another one falling,” explained Art Hogan of B. Riley Wealth Management, about banks. “There is the risk of seeing a new name added to the list or the possibility of a bank finding a buyer. It is this last scenario that materialized and it is seen as good news. »
The announcement propelled the price of the regional institution which, before the implosion of SVB, was a much smaller bank than the California establishment, and weighed only half of the assets of Silicon Valley Bank.
It is the whole sector that was sucked into the stock market, in particular the Californian First Republic (20.55%), considered in recent days as the new weak link in the sector in the United States.
Another regional brand, Texan Comerica, sparked (7.26%), as did KeyCorp (4.97%) — parent company of KeyBank, based in Cleveland (Ohio) — or the Western Alliance network (6. 05%), headquartered in Phoenix, Arizona.
The takeover of almost all of what was left of SVB “instilled confidence in the banks which had been on the loose for the past three weeks”, underlined Art Hogan.
The big names in the sector were also at the party, particularly Bank of America (3.74%), Citigroup (3.15%) and Goldman Sachs (2.15%).
The sigh of relief extended to the bond market, marked by a sharp rise in rates. The yield on 10-year US government bonds was 3.49%, down from 3.37% at the close on Friday.
“ The markets will calm down when rates settle down ” anticipates Art Hogan. Since the onset of the banking crisis, yields have had a rollercoaster ride.
The 2-year Treasury bill rate, one of the most volatile currently, fell from 5.08% to 3.55%, a movement of a magnitude not seen since the financial crisis, before rising to 3 .95% Monday.
“ If all this does not stabilize, the stock market will have a chaotic course ”, underlines Art Hogan.
On the stock market, the cruise line Carnival fell (-0.70%) despite a quarterly loss lower than expected and a turnover above analysts’ forecasts. The Miami group says it has recorded the highest quarterly booking volume in its history for North America, Australia and Europe.
Indicted on Thursday by the alternative fund Hindenburg Research, which accuses it of misleading communication to its shareholders, the electronic payments group Block resurfaced (4.96%), after losing more than 16% over two sessions.
Manchester United, listed on Wall Street, was tackled by investors (-6.96%), after the announcement of a new Qatari offer to buy the club made on Friday, around 5 billion pounds (5.7 billion euros). euros). It remains significantly lower than the 6 billion hoped for by the current owners, the Glazer family, who do not rule out giving up a sale.
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