ASIAN STOCK MARKET: SHOWS ALL-ROUND RECOVERY AS FED TO REMAIN LESS HAWKISH, OIL STRUGGLES NEAR $68.00

Markets in the Asian domain have shown an all-around recovery on Tuesday following the footprints of the S&P500. It seems that investors are cheering the attempts of reviving the collapsed banks. In Eurozone, UBS has agreed to acquire Credit Suisse for $3.2 billion in a rescue deal. And, various financial institutions have pumped $30 billion to save First Republic Bank.

Despite huge liquidity influx into First Republic Bank, Standard and Poor has downgraded the creditworthiness of the mid-side United States bank into deeper junk, citing that the promised helicopter money is unable to get the commercial bank out of trouble.

At the press time, ChinaA50 jumps 0.60%, Hang Seng inched up by 0.08%, KOSPI gained 0.31%, and Nifty50 added 0.36%.

Japanese markets are closed today on account of Vernal Equinox Day.

Rising uncertainty over the monetary policy announcement by the Federal Reserve (Fed) is squeezing volatility from the market. Fresh concerns about global banking turmoil are bolstering the case of an unchanged monetary policy stance. As per the CME Fedwatch tool more than 70% odds are favoring a 25 basis point (bps) interest rate hike on Wednesday. Contrary to that, Goldman Sachs is expecting a pause in the policy-tightening spell considering the stress in the banking system.

After an unchanged interest rate decision by the People’s Bank of China (PBoC), optimism for economic recovery is stemming again as retail demand and spending pattern is solidifying. Bloomberg reported that consumer spending is increasing again as people are planning trips, dining out, and returning to shopping malls. Still, residents of the world’s second-biggest economy aren’t splashing out like they used to. It would be worth calling that this just the beginning as spending patterns would bolster further as fears of a pandemic would fade further.

On the oil front, oil prices have recovered firmly after printing a fresh 15-month low below $65.00. The oil price is struggling to extend recovery above $68.00, however, the upside looks solid. A recovery in oil price has been observed amid expectations that OPEC might intervene to support prices.