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Equities Roundup: Bank Shares Mostly Higher

US STOCKS

Support for US equities continues, trading near session highs after a brief pullback into midday. Front month S&P futures currently trading around 3977.0, buoyed by Energy, Materials and ironically, Financial sectors

  • Bank stocks bounced for the most part (the notable exception was First Republic, FRC, down 33% in the second half) after liquidity operations through standing U.S. dollar liquidity swap line arrangements announced Sunday.
    UBS's $3.25B takeover of Credit Suisse also announced Sunday, though risk appetite soured amid
  • UBS's $3.25B takeover of Credit Suisse also announced Sunday, though risk appetite soured amid credit risk concerns after news CS' AT1 bond rout with holders of $17B debt taking the loss in full.
  • From a technical standpoint, despite the recent gains, the trend condition in S&P E-Minis remains bearish. E-Minis have recently cleared a key support at 3960.75, the Mar 2 low, to confirm a resumption of the bear cycle that started Feb 2.
  • The move lower signals scope for an extension towards 3822.00 next, the Dec 22 low. Initial firm resistance is seen at 4026.76, the 50-day EMA. A break of this EMA would alter the picture.

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