Global stocks closed higher on Monday after UBS took over Credit Suisse which helped to ease investors’ fear. All three US indexes managed to end the day in positive territory with the Dow Jones gaining 1.20%, the S&P 0.89%, and the Nasdaq 0.39%. Meanwhile, gold rallied reaching the highest level for this year at $2010 per ounce before retreating.
“Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares,” UBS said in a statement yesterday. However, this transaction means a complete write-down of 16 billion CHF ($17.28 billion) of Credit Suisse bonds that will become worth nothing.
On the other side, New York Community Bancorp unit is set to buy Signature Bank assets as per the latest statement by the FDIC as regulators continue to look for rescue plans to halt the current banking crisis.
Later today, Canada’s CPI is expected to remain unchanged at 0.5% while in the US existing home sales are due to rise from 4.00M to 4.17M.
Below, we will be analyzing the latest price action developments in the major currency pairs alongside gold.