Banking turmoil in the US sent customers rushing to withdraw their deposits – but judging by the numbers, it wasn’t a bad period for the financial sector.
The US banking sector posted record first-quarter profits this year, largely due to the industry’s worst crisis since 2008.
U.S. banks’ profits amounted to about $80 billion, about half of which came from one-time profits from First Citizen and Flagstar, which bought up assets from bankrupt lenders Silicon Valley Bank and Signature Bank after they were seized by U.S. regulators and against a reduced price in March.
5 things to start your day with
1) Bank of England targets small lenders in wake of market turmoil | Challenging banks and building societies are forced to set aside more money instead of lending it to customers
2) How supermarkets became public enemy number one | Retailers are accused of ‘greed’ as the cost of groceries remains stubbornly high
3) Pound rises as bankers admit they were ‘wrong’ with UK economy | Experts at Citi are tearing up the forecast that the pound will reach parity with the dollar
4) Ireland launches sovereign wealth fund as low taxes pay off | Proposals come as rock bottom prices attract some of the world’s largest companies
5) Modern electric motors make driving sports cars boring, says McLaren boss | The supercar manufacturer is not yet ready to switch to electric models
What happened from one day to the next
Asian stocks fell during subdued trading as investors awaited an upcoming report on inflation in the United States today, a key indicator of where interest rates and global growth could head in the coming months.
Japan’s Nikkei 225 index fell 0.4 percent to 29,122.18, while the broader Topix index fell 0.6 percent to 2,085.91.
The Australian S&P/ASX 200 fell almost 0.1 percent to 7,257.60. The South Korean Kospi fell almost 0.1 percent to 2,508.04.
Hong Kong’s Hang Seng fell 0.6 percent to 19,746.67, while the Shanghai Composite lost 0.9 percent to 3,326.31.
Market watchers are also concerned about any signs of economic woes in China after recent data showed imports lagged while exports continued to grow, albeit at a slower pace than before.
Wall Street shares closed lower Tuesday as investors became more cautious ahead of the emergency meeting between Joe Biden and congressional leaders to discuss the unresolved debt ceiling crisis.
The Dow Jones Industrial Average fell 56.88 points, or 0.17 percent, to 33,561.81. The S&P 500 lost 18.95 points, or 0.46 percent, to 4,119.17 and the tech-heavy Nasdaq Composite fell 77.36 points, or 0.63 percent, to 12,179.55.