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UBS has bought Credit Suisse for £2.6 Billion in a cut price deal to avoid a new financial crisis. The deal was orchestrated on Sunday, hours before the financial markets opened amid fears of panic if the banks value dropped further when trading began. Credit Suisse are likely to assume losses of up to 4 billion pounds and with UBS stepping in it seems like a bailout attempt to stop the growing panic over the health of the global banks as we saw last week with what happened with the failure of Silicon Valley Bank.

A loan from the SNB (Swiss National Bank) of $54bn dollars to secure ‘financial stability’ failed to stop the withdrawals flooding in at Credit Suisse, with $10bn said to have been pulled out on Friday alone.

The merger of the two institutions are likely to lead to thousands of job cuts in the city of London with both parties currently employing around 11 thousand people between them.

The Swiss National Bank which is the Central Bank of Switzerland has agreed to lend UBS up to £88bn in emergency liquidity in an effort to shore up confidence.

The rescue of Credit Suisse will put pressure on Central Banks to stop raising the interest rates at the next policy meeting as higher rates are likely to put more pressure on smaller lenders. The questions that remains are, will the merging of the two banks and injection of liquidity stabilise fears amongst big money investors in the banking sector and if the Central Banks cave in and halt raising interest rates, how will they stop the ongoing Inflation issues we are experiencing?

February Stock Market Decline

The Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 all finished in the negative for the month of February 2023. This decline marked the end of a long period of growth for the stock market, which had seen significant gains in the preceding months.

There were still concerns about the potential for new variants to emerge and the economic impact of ongoing lockdowns and restrictions. Investors were worried about the possibility of a prolonged economic downturn and the impact that this could have on corporate profits.

Another factor that contributed to the decline in the stock market was the ongoing tensions between the United States and China. The two countries had been engaged in a trade war for several years, and although there had been some progress in negotiations, there were still concerns about the potential for further escalation. This uncertainty made investors nervous and caused them to sell off stocks.

Finally, there were concerns about the high valuations of many stocks. The stock market had been on a long period of growth, and many stocks had reached valuations that were difficult to justify based on their underlying fundamentals. This made investors nervous about the potential for a correction or a crash.

Will we see March post a positive month for the stock market?

NASDAQ done the business last week. We were able to send this short trade out to our discord community last week for a 155 pip move before price returned back the following morning.

The next afternoon session showed us confirmations we look to take advantage of and executed on for another 255 PIPS.

Whilst we trade a range of different pairs the Nasdaq price action was by far the cleanest to read last week.

Who’s excited to trade this week ahead!? 🔥🔋