Deutsche Bank is leading a rebound in European bank stocks and the broader equity market from Friday’s sharp sell off. The German lender is up 4% as credit defaults swaps retreat, while the Stoxx 600 gains 1.0%. The S&P 500 rose 0.15%, the NASDAQ was 0.45% lower as tech shares slumped following last week’s rally. Asian equity futures are in the green before the open. The risk-on tone is evident elsewhere with bonds, gold, and the Japanese yen all in the red. SVB was taken over by First citizens bank yesterday which saw the troubled First citizens shares jump 55%.

Treasuries were pressured lower Monday and extended overnight losses during the course of the US session. The front-end led the drop as 2-year yields pushed above 4% after a 23bps rise in yield, helped by a risk-on backdrop. The 10-year yield also rose 15.5bps to 3.53% while the German equivalents gained 9-12 bps across the curve.

The US dollar and Japanese yen retreated on Monday while other Group-of-10 currencies advanced as worries of broader contagion from the banking turmoil eased. Bloomberg Dollar Spot Index is down 0.2% as the currency fell against all of its G-10 peers except the yen and kiwi.

• USD/JPY up 0.6% to 131.57
• AUD/USD little changed at 0.6648
• NZD/USD fell 0.2% to 0.6192
• EUR/USD rose 0.3% to 1.0797

WTI climbed above $72 with a 5.15% rise. Russia’s seaborne crude flows are holding strong above 3 million b/d. European natural gas rose as strikes in France heightened supply fears. Gold fell as global fear eased, copper was little changed at $4.10/lb and iron ore was up half a percent to $119.60.

Daily analytics by,

Lenny Hayes

Chief technical officer

Daily analytics by,

Lenny Hayes

Chief technical officer