Markets remain risk-averse
A frantic week in financial markets draws to a close and it’s clear that investors are feeling very anxious about carrying risk into the weekend.
We all saw how fast things can move over the weekend and risk-averse trade at the end of this week highlights how nervous investors are about further fallout. If we can get through the weekend without more drama, Monday’s open could look very different but it’s going to take time for the wounds to heal.
Even with all of the measures undertaken by the Fed, Treasury, BoE, SNB, and US banks to stabilize the situation this week, we’re still seeing distress in the markets. Credit Suisse is down 10% today and not far from Wednesday’s lows, while First Republic is off 23% and down almost 80% in a little over a week.
Other regional banks are also getting hit hard again on Friday, again a sign of dwindling confidence amid uncertainty over which will be next to require assistance. Authorities continue to work to stem the bleeding and more band-aids may be necessary to shore up confidence.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
