The last week of March is upon us, yet the financial markets are in a similar state of distress as they were a year ago. Back then, the coronavirus pandemic had just started spreading outside of China, mostly affecting Europe and the UK. Now, Europe is indeed struggling with the third wave of infections and gearing down for another set of lockdowns, while the US and the UK are in recovery mode.
France and Germany are currently the most concerning countries in the EU in terms of daily infections and hospitalizations. India, Bangladesh, and Pakistan are also experiencing a worrisome pandemic wave. In South America, Brazil and Chile, among others, are also on high alert with thousands of new Covid-19 cases each day.
Speaking of the United States, President Joe Biden is going to reveal more details about his infrastructure spending plans this week. The proposal is expected to be deeply influenced by climate change concerns and outline how the US is going to transition to green energy sources over the next few years.
This week the stock markets are reeling from Friday’s developments surrounding Archegos Capital Management, a hedge fund run by Bill Hwang. The hedge fund failed to meet multiple margin calls last week, forcing the banks it was working with to close those positions at a loss.
The two most involved banks are Credit Suisse and Nomura, both of which have taken a serious hit to their stock value as a result. Credit Suisse said it now expects its Q1 earnings to be severely affected by this incident.
US stock indices will trade lower today while investors wait for more companies to step forward and announce whether they were affected by the Archegos situation.
As for the 2021 Suez crisis, the massive container ship has been partially freed, according to the local authorities. This initially encouraged the markets that the supply route will be restored soon, but experts warned that challenges still remain and the ship is not yet fully free.
