Banking turmoil in the US sent customers racing to withdraw their deposits – but going by the numbers it was not a bad period for the financial industry.
America’s banking industry booked record first quarter profits this year, thanks in large part to the worst crisis in the sector since 2008.
US bank profits reached about $80bn, with about half of the increase coming from one-time gains recorded by First Citizen and Flagstar, which bought up assets from failed lenders Silicon Valley Bank and Signature Bank after they were seized by US regulators and sold at a cut price in March.
5 things to start your day
1) Bank of England targets small lenders in wake of market turmoil | Challenger banks and building societies face being forced to set aside more cash instead of lending it to customers
2) How supermarkets became public enemy number one | Retailers face accusations of ‘greedflation’ as cost of groceries remains stubbornly high
3) Pound to surge as bankers admit they were ‘wrong’ on UK economy | Experts at Citi tear up forecast for sterling to hit parity with dollar
4) Ireland to launch sovereign wealth fund as low taxes pay off | Proposals come as rock bottom rates attract some of the world’s biggest companies
5) Modern electric engines make driving sports cars boring, says McLaren boss | Supercar manufacturer is not yet ready to switch to electric models
What happened overnight
Asian shares declined in muted trading as investors awaited an upcoming report on inflation in the United States today, an important indicator for where interest rates and global growth might go in the coming months.
Japan’s Nikkei 225 index fell 0.4pc to end at 29,122.18, while the broader Topix index trimmed 0.6pc to 2,085.91.
Australia’s S&P/ASX 200 inched down nearly 0.1pc to 7,257.60. South Korea’s Kospi slipped nearly 0.1pc to 2,508.04.
Hong Kong’s Hang Seng dipped 0.6pc to 19,746.67, while the Shanghai Composite shed 0.9pc to 3,326.31.
Market watchers are also worried about any signs of economic woes in China after recent data showed imports were lagging, even as exports continued to grow, although at a slower pace than before.
Wall Street stocks closed lower on Tuesday as investors grew more cautious ahead of the emergency meeting between Joe Biden and congressional leaders to discuss the unresolved debt ceiling crisis.
The Dow Jones Industrial Average fell 56.88 points, or 0.17pc, to 33,561.81. The S&P 500 lost 18.95 points, or 0.46pc, to 4,119.17 and the tech-heavy Nasdaq Composite dropped 77.36 points, or 0.63pc, to 12,179.55.
