Key developments that could influence markets on Tuesday: Meetings: Chinese President Xi Jinping and Russian President Vladimir Putin are set to engage in formal talks regarding Beijing's proposals for a war resolution Meetings: Britain's finance minister speaks to the Economic Affairs Committee Central bank meetings: The Federal Reserve convenes for its two-day monetary policy meeting. Policy decision is on Wednesday <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Market fallout of a banking crisis Over $95 billion in market value wiped out in 2 weeks ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Anshuman Daga; Editing by Bradley Perrett)
A look at the day ahead in European and global markets from
Anshuman Daga
Market gyrations are common but the scale of recent moves
across asset classes due to a slew of bank takeovers has shocked
even the most experienced traders and investors.
Safe-havens such as gold and Treasuries are in high demand
along with more speculative instruments, such as tech stocks and
bitcoin, as worries over the banking crisis are boosting
disparate assets.
While UBS shares were hammered in early trading on Monday
after its shotgun marriage with troubled Credit Suisse following
an intervention by Swiss authorities, the bank's shares pared
most of the losses towards the close.
The biggest pain seems to have been inflicted on holders of
Credit Suisse's risky debt, leading lawyers from Switzerland,
the U.S. and Britain to talk to many Additional Tier 1 (AT1)
bond holders about possible legal action, a law firm said.
On Tuesday, Asian equities staged a tentative recovery as
the buyout of Credit Suisse eased immediate worries of a
knock-on effect to other banks, while the U.S. dollar was stuck
near a five-week low.
European Central Bank President Christine Lagarde said the
market turmoil might do some of the ECB's work for it in
dampening demand and inflation.
Markets have been on high alert for central banks to raise
interest rates sharply to cope with high inflation.
However, there could be some surprises now.
ECB policymaker Robert Holzmann watered down his recent call
for three more rate increases of 50 basis points in quick
succession.
Holzmann, who heads the Austrian National Bank, told German
business daily Handelsblatt two weeks ago the ECB should raise
rates by 50 basis points at each of its next four meetings.
The ECB made one such increase at its meeting last week.
Meanwhile, just hours after the state-backed takeover by UBS
of troubled Credit Suisse was announced, memorabilia bearing the
167-year-old bank's name and logo was being put up for sale in
Switzerland, marking the end of an era for Credit Suisse.
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