Systemic risk from troubled banks re-examined. Wall Street is set for a sharply lower open as Credit Suisse (CS) plunged.
My top 10 things to watch Wednesday, March 15
1. Systemic risk re-examined one day after Tuesday’s Wall Street bounce following three sessions of SVB-sparked concerns. Saudi National Bank will not put more money into Credit Suisse (CS) whose shares sank nearly 30% early Wednesday. Very big impact on bonds and stocks in Europe (down over 2.5%) and the U.S. (down 2% premarket).
2. The Dow, the S&P 500 and the Nasdaq set for sharply lower open as the Credit Suisse plunge drags down U.S. bank stocks early Wednesday, including Club holdings Wells Fargo (WFC) and Morgan Stanley (MS). Investors also digesting cooler-than-expected February producer price data after Tuesday’s as-expected consumer price print. February retail sales, out Wednesday, matched estimates. The largely positive economic data not able to help stocks.
3. The market still puts over 50% odds on a quarter-point Fed interest rate increase.
