Daily summary: Wall Street in 'risk-on' mode

• European indices ended the midweek session with gains, with the DAX and CAC40 up 1.23% and 1.39%, respectively. Sentiment was fueled by gains during the Asian session, where the Hong Kong index rallied after the Alibaba news;
• Increases in the shares of UBS and Deutsche Bank calmed some 'stress' in the European banking sector. The Czech Bank maintained interest rates, as expected and the market is pricing in up to 100 bp cuts by the end of February;
• Better sentiment also prevailed on Wall Street. The Dow Jones is trading at 0.66% plus, the S&P500 and Nasdaq are down 1.02% and 1.4%, respectively. Data from the real estate market surprised and indicated a 3% m/m increase in house construction growth;
• According to Republican Rep. Kevin Hern, Fed chief Powell informed the party that supply-chain-induced inflation has definitely eased and conveyed that, as expected, rates will be raised only one more time. Powell was also expected to indicate that raising the FDIC's deposit guarantee definitely needs to be considered;
• Fed member Michael Barr indicated that the Federal Reserve is examining the prospect of tighter credit conditions and will respond with appropriate monetary policy decisions. The White House says the Taiwanese president's planned visit to the US does not hit China's policies;
• Among the largest US companies, Intel is by far the best performer. The semiconductor company's stock is up more than 7% on news that it is updating its product roadmap and will deploy Sierra Forest, in early 2024. Intel conveyed is working on Intel Developer Cloud, an AI tool that will help developers develop AI models;
• Oil is again under downward pressure. OIL.WTI contracts fell after a reading of inventories according to the EIA. The crude stockpile reading showed a decline of -7.489 million barrels vs. a forecast increase of 1.75 million. However, crude inventories in Cushing (Oklahoma) rose to 1.63 million barrels versus 1.06 million previously. 
• The EURUSD pair is holding at 1.0842. Peter Kazimir, a member of the European Central Bank's council, said that the ECB is closely monitoring the situation in the banking sector and is ready to intervene. Kazimir's somewhat softer stance according to which developments in core inflation and broader trends regarding inflation will influence the ECB's decisions only momentarily weakened the EUR. The upward movement has resumed
• Cryptocurrencies are gaining, with Bitcoin back above $28,000 despite the CFTC's lawsuit against Binance. On March 30 there will be a secret meeting between the SEC and Ripple representatives, which the market perceived as a potential announcement of a settlement. Stellar and Algorand tokens, both compliant with the ISO20022 payment standard, which will replace the SWIFT system, also gained today.

The banking crisis failed to keep the US30 below the SMA200 (red line). A quick exit above the key resistance level could herald a further rebound toward 33,500, where the 23.6 Fibonacci abolition of the upward wave initiated in the fall of 2022 runs through. Source: xStation5