THE MOST IMPORTANT NEWS OF THE LAST WEEK 17.3.2023

Dollar in decline and stronger Euro

The U.S. currency fell on Friday and riskier currencies rose on easing fears of a global banking crisis. The foreign exchange market was boosted by the action of several large US banks, which placed $30 billion worth of deposits in First Republic Bank. In contrast, EUR/USD strengthened by 0.5% as a result of the European Central Bank's decision to raise rates by 50 basis points amid banking turmoil. *

The performance of EUR/USD over the past 5 years. (Source: Investing) *

Credit Suisse is designated as a safe bank

The well-known bank Credit Suisse is in trouble. But on Wednesday comes news that the Swiss National Bank has designated Credit Suisse as well-capitalised and disclosed that it will provide additional liquidity if needed as regulators try to calm fears of a widespread financial crisis. The Swiss Financial Market Supervisory Authority and the SNB believe Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks.

ECB raises interest rates again

On Thursday, the European Central Bank increased interest rates again. The increase hit three key rates by 50 basis points in the sixth consecutive rate hike.  The ECB's decision raises the rate the institution pays on bank deposits, which is the benchmark for borrowing costs in the eurozone, to 3.0% from 2.5%. The regulator is not giving up in the fight against inflation, despite the turmoil in financial markets that has sparked fears of a global banking crisis.

FedEx improved its outlook

Shipping company FedEx improves its outlook for the period ahead after reporting third-quarter earnings. This was significantly higher than expected as its continued cost-cutting efforts helped offset continued weak demand. Shares of FedEx Corporation were up 11% following the announcement. The company also posted earnings per share of $3.41 on revenue of $22.20 billion. * For fiscal year 2023, the firm raised its outlook for adjusted earnings per share to a range of $13.80 to $14.40 from the previous range of $12.50 to $13.50. [1]

The performance of FedEx Corporation shares over the past 5 years. (Source: Investing) *

* Past performance is no guarantee of future results

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or based on the current economic environment which is subject to change. Such statements are not guaranteeing of future performance. They involve risks and other uncertainties which are difficult to predict. Results could differ materially from those expressed or implied in any forward-looking statements.