Regulators’ freeze on SVB spurs Asian stock movements
S&P 500 futures rose after regulators announced a plan to freeze every depositor at a Silicon Valley bank and make additional funding easier for other banks.
S&P 500 futures increased 0.23%, while Nasdaq 100 futures rose 0.42%.
Investors will be keeping an eye on a variety of economic statistics this week. The final release of Consumer Price Index (CPI) figures before the Federal Reserve’s meeting on March 22nd is set to occur on Tuesday. This will be the last major report on inflation ahead of the conference.
The trading of Shanghai Pudong Development Bank’s stocks dropped approximately 1% following the formal announcement of the joint venture between the bank and SVB that their balance sheets would be kept independent of each other.
Total cash and bank balances were below 9% at SVB. Shares of the company were recently down about 0.22%.
Hong Kong stocks rose 2.87%.
BeiGene saw its stock dip approximately 1% upon reporting that its uninsured cash deposits with SVB amounted to roughly 3.8% of its entire portfolio as of December.
Mobvista shares retreated about 1% after the company said it had little exposure to SVB. The company said a small portion of its capital was in bank deposit accounts, amounting to an average of $430,000—total cash and bank balances of 8.6% at the lower end of the SVB. The company’s shares were down about 0.4% after paring earlier losses into the positive.
Regulators take action to stop Silicon Valley Bank’s collapse in US and UK markets
European shares fell by a large percentage point as regulators in the US and UK tried to prevent Silicon Valley Bank from collapsing in their economies.
The Stoxx 600 retreated 1.82 percent, while Germany’s Dax lost 1.9 percent. France’s CAC 40 lost 1.81 percent. Futures markets indicated the benchmark S&P 500 index would open 0.45 percent higher, while the Nasdaq 100 would be 0.6 percent higher.
Investors were discussing joint moves by the US and British authorities to avoid the failure of California-based SVB and its British arm on Friday for consumers. Authorities seized SVB, the bank for many US tech startups after customers rushed to collect $42 billion in benefits in one day.
