Pressure on the markets and the drop in oil prices: what you need to know in the morning

Main news of foreign markets this morning.

0 US stock indexes fell on Tuesday

The S&P 500 lost 1.2%, while the high-tech Nasdaq and the Dow Jones index fell 1.1%. Investors maintain a restrained attitude in anticipation of the upcoming decision of the Federal Reserve System on interest rates.

Despite the ongoing banking crisis in the US, market participants expect the Fed to raise rates by another 0.25%.

Meanwhile, concern about the US debt ceiling is also starting to exert some pressure on the markets, notes SeekingAlpha.

Shares in Asia are declining, except for Japan

The broad index of Asian stocks (excluding Japan) MSCI AC Asia ex Japan Index lost 0.8% today, South Korea’s Kospi fell by 0.9%, Singapore’s STI fell by 0.9%, Hong Kong’s Hang Seng fell by 1.6%, and Japan’s Nikkei rose 0.1%.

All because of signs of weakening of the American economy, as well as new problems in the US banking sector.

Shares of US regional banks fell sharply on Tuesday

According to the results of yesterday’s trading session, the industry index — S&P Regional Banks — decreased by approximately 7%.

Among the leaders of the fall: PacWest Bancorp (-26.5%), Western, Alliance Bancorp (-20.4%) and New York Community Bancorp (-7%).

Large American banks did not stand aside. Shares of Wells Fargo fell by 4.7%, shares of Citigroup and Bank of America decreased by 3.1% and 3.9%, respectively, and JPMorgan’s capitalization decreased by 1.7%.

The fall in shares of US banks resumed after the collapse of First Republic Bank — the largest bankruptcy of an American bank since the financial crisis of 2008.

Meanwhile, market participants fear that the banking crisis is still far from over.

Shares of American energy companies are falling against the backdrop of falling oil prices

According to the results of yesterday’s trading, the industry index — S&P 500 Energy — decreased by 1.4%.

Among the shares of large US energy companies in the leaders of the fall on Tuesday: Halliburton (-7.4%), Schlumberger (-6.2%), APA Corporation (-6.6%), EOG Resources (-5.3%) and Marathon Oil (-5.1%). The largest US energy companies — Chevron and Exxon Mobil — also fell yesterday (by 4% and 3.3%, respectively).

The fall in the shares of American energy companies is taking place against the background of falling oil prices. Following the results of yesterday’s trading, Brent futures fell by 5% to $75.32 per barrel, and WTI contracts decreased by 5.3% to $71.66.

The decline in oil prices is associated with disappointing data from China, which indicate a drop in manufacturing activity in the country, as well as instability in the US banking industry and worsening growth prospects for the American economy.

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Source: Ministry of Finance

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