While direct global exposure to risks from the U.S. failures outside the U.S. appears limited, the collapses of Silicon Valley Bank and Signature Bank have shaken confidence in the industry at a time when the Federal Reserve and other central banks are struggling to fine-tune policies to crush stubborn inflation without snuffing out post-pandemic economic recoveries.
On Wall Street, the future for the S&P 500 was up 0.3% while that for the Dow Jones Industrial Average added 0.2%. On Monday, the S&P 500 dipped 0.2% and the Dow industrials fell 0.3%. The Nasdaq composite rose 0.4%. "There is escalating tension in the global financial world; this is despite non-U.S. banks' exposure to U.S. regional banks being minimal, with the global systems being well capitalized and flush with liquidity," Stephen Innes, managing partner at SPI Asset Management, said in a report.
Pressures persist, however, especially for regional banks a couple steps below in size of the massive, "too-big-to-fail" banks that foundered in 2007 and 2008.
Geee we wonder why! Not that th corrupt media will tell us