Investors reminded the effects of high interest rate on economy and financial system. Larger US banks oversold

SVB fall out has prompted investors to consider the effects of high interest rates. We are keeping a close eye on buyout or any bailout.

• List of tech companies exposed to SVB, https://www.tipranks.com/news/silicon-valley-bank-the-aftermath-of-the-closure-and-impacted-companies

• In response to the current market conditions, many investors diversifying into safe haven assets such as Gold and Treasury Bonds.

• Since SVB incident, outlook for interest rates has softened somewhat, 2yrs treasury fall sharply on Friday.

• SVB fall out likely to be contained within specific industries. Larger banks C, BAC, and WFC are oversold, technical hidden buying observed.

• We are monitoring the potential effects on various asset classes, as well as the US dollar and the Chinese renminbi after recent Iran-Saudi peace deal.

Headlines for Week Ahead:
SVB fallout development,
US CPI,
China Retail Sales and Industrial Productions,
SG NODX,
Corp Earnings (ADBE, Ping An Insurance, Pinduoduo)

Gold ETF and US Treasury Bond ETF jumped on Friday.

Citigroup (C), Bank of America (BAC) and Wells Fargo (EFC), technical hidden buying observed.

2022 US FED Stress Test Result: Larger banks have sufficient capital to absorb significant losses and continue lending.

https://www.federalreserve.gov/publications/files/2022-dfast-results-20220623.pdf

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