Market Outlook: Fed’s choice; continued banking sector turmoil?
After several turbulent weeks and volatile markets, we are all anxiously awaiting what will come. It started with the collapse of some US niche banks, and then we saw the giant Credit Suisse being taken over at a bargain price by its long-time Swiss competitor UBS. On Friday last week, it was the turn of German-based Deutsche Bank to run into trouble. But if we summarise last week, we see that stock markets stabilised, with Sweden’s OMXS30 large cap index closing at around zero while in the United States the broad S&P 500 index and the large cap Dow Jones Industrial Average closed about 1.4% and 1.2% higher, respectively. What has happened during the past week or so, and what will happen now?