Good morning contrarians! It is Monday, March 27.
It was a refreshingly quiet weekend. No reports of bank failures in the US or Europe or anywhere else for that matter. We did get an announcement that most of Silicon Valley Bank’s assets will be taken over by First Citizen Bancshares (FCNCA 0.00%↑) but this was an institution that has already failed.
State of Play
As of 0640 it looks like risk-on:
Stock futures are pointing to gains, with small caps seeing the biggest move. The Russell 2000 is up 1.7%. The S&P 500 is up 0.5%;
Bonds are selling off, especially at the short end of the curve with the 2-year yield up 13 basis points to 3.91% and the 10-year up 8bps to 3.46% (yields move inversely to prices);
Commodities are mixed, with WTI crude oil up 1% to trade around $70/barrel but copper is down 1% and gold and silver are retreating as well, down ~1% each.
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