Live Markets: U.S. banks' uninsured deposits sharply fall in Q1 - S&P Global

First Republic Bank

15/06/2023 16:13

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    U.S. BANKS' UNINSURED DEPOSITS SHARPLY FALL IN Q1 - S&P
GLOBAL (1100 EDT/1500 GMT)
    Uninsured deposits of U.S. banks fell $597.49 billion in the
first quarter of the year, according to a note by S&P Global
Market Intelligence, as the banking crisis earlier this year
exacerbated a trend of falling deposits.
    These deposits were a major focus of the second-largest bank
failure in U.S. history that led to the demise of Silicon Valley
Bank and Signature Bank in March, followed by First Republic
Bank in May.
    The banking industry reported $7.118 trillion in uninsured
deposits at March 31, making up 42.2% of total deposits minus
exclusions. 
    
    
    The uninsured deposits have fallen since the first quarter
of 2022, by both the dollar amounts of uninsured deposits and
the percentage of total deposits, S&P added, with the latest
quarterly drop the steepest yet. 
   Last month, the Federal Deposit Insurance Corporation also 
said it saw $472 billion in deposit outflows in the first
quarter - the largest it had recorded since it began collecting
such data in 1984.
    Among the Big Four banks, Citigroup  C.N , Bank of America
 BAC.N  and Wells Fargo & Co  WFC.N  reported drops in uninsured
deposits, while JPMorgan Chase  JPM.N  reported a 1.9% rise and
likely picked up more uninsured deposits following its
acquisition of First Republic after its failure.
    
    (Bansari Mayur Kamdar)
     *****
    
    
    U.S. STOCKS COUNTER-ATTACK OFF EARLY LOWS (1021 EDT/1421
GMT)
    Wall Street opened lower on Thursday after the Federal
Reserve signaled that interest rates could rise further this
year.
    That said, the main indexes have quickly reversed and are
now modestly up on the day.
    Nearly all S&P 500  .SPX  sectors are higher with energy
 .SPNY  leading gainers. NYMEX crude futures  CLc1  are up
around 1.5%.
    Real estate  .SPLRCR  is the sole loser.
    Under the surface, transports  .DJT  and regional banks
 .KRX  are outperformers.
    Chip stocks  .SOX , however, are on the weak-side.
    Nevertheless, growth  .IGX  is slightly outperforming value
 .IVX  in the early going.
    Meanwhile, in terms of streaks, besides the SPX on track to
rise for a fifth-straight week, the Nasdaq  .IXIC  is on track
to rise for an eighth-week in a row. That would be the IXIC's
longest weekly winning streak since a 10-week run of gains that
ended March 1, 2019.
    Here is a snapshot of where markets stood just after 45
minutes into Thursday's session:
    
  
    (Terence Gabriel)
     *****
    
    
    S&P 500 INDEX: RUNNING HOT (0905 EDT/1305 GMT)
    In the wake of post-FOMC statement gyrations on Wednesday,
the S&P 500 index  .SPX  ended at 4,372.59, which was a
fresh-closing high back to April 2021. With this, the benchmark
index is on track to rise for a fifth-straight week.
    That said, a weekly oscillator is running hot, and is at its
most overbought since early-September 2021. Back then, the SPX
promptly sold off more than 5% over the next 5 weeks:
    
 
    The SPX last rose five-weeks in a row into early-November
2021. The index closed up six weeks in a row in November 2019. 
    With the current streak, the weekly relative strength index
(RSI) has reached 75.826 which is its highest reading since
76.323 on September 3, 2021. Back then, the SPX sold off as much
as 5.7% into its early October 2021 trough.
    In terms of the next significant resistance above
Wednesday's 4,391.82 intraday high, there is a powerful weekly
Gann Line intersection which is around 4,445 (Gann Lines are
trend lines running at certain angles off significant highs and
lows). 
    Next week, however, the index will move past this point, and
the Gann Lines will then present hurdles around 4,440 and 4,480.
  
    The 76.4%/78.6% Fibonacci retracement zone of the entire
2022 decline is in the 4,505-4,535 area.
    In premarket trade, Thursday, however, e-mini S&P 500
futures  ESc1  are faltering after the Fed, on Wednesday,
forecast further rate hikes. ESc1 action is suggesting around a
15 point drop for the SPX at Thursday's open.
    In the event a reversal turns sharper, support is at the
August 2022 reaction high at 4,325.28 and the 61.8% Fibonacci
retracement of the entire 2022 decline, at 4,311.69.
    Next week, another weekly Gann Line will provide support at
around 4,250.
    
    (Terence Gabriel)
     *****
     
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SPX06152023    https://tmsnrt.rs/463JUM1
earlytrade06152023    https://tmsnrt.rs/3JhNRmC
Uninsured deposits drop ~$600 bln in Q1 - S&P Global    https://tmsnrt.rs/3qS3E4Y
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 (Terence Gabriel is a Reuters market analyst. The views
expressed are his own)