Investors seeking safety and higher yields amid economic uncertainty have flocked to money market funds, causing a surge of over $286 billion in assets under management in the first six months of 2020. This influx of capital comes as depositors continue to withdraw their savings from traditional banks due to low interest rates and concerns about the stability of the banking system. Money market funds, which offer a higher yield than typical savings accounts with relatively low risk and easy access to cash, have become an attractive option for investors looking for a safe haven for their money. This trend could have significant implications for the future of banking and financial markets.
Investors have been pouring cash into US money market funds over the past two weeks, with Goldman Sachs, JPMorgan Chase, and Fidelity emerging as the biggest beneficiaries. The trend has been prompted by concerns about the safety of bank deposits after the collapse of two regional US banks and Credit Suisse’s rescue deal. Over $286bn has flowed into the funds so far in March, according to data from EPFR. The funds, which hold low-risk assets such as short-dated US government debt, offer attractive yields as interest rates rise. The flows mark the strongest quarter for US money funds since the Covid-19 pandemic began.
In conclusion, the latest surge in money market funds, which has seen over $286bn added to the industry, indicates a new wave of uncertainty among investors as they seek safer and more stable investment options. The trend is also indicative of a global shift in the way people manage their finances, with more and more individuals choosing to explore alternative investment options beyond traditional banking deposits. While this trend may be advantageous for money market funds, it also poses a challenge for banks to rethink their strategies and adapt to changing market conditions. Ultimately, only time will tell how this latest development will impact the financial services sector and shape the future of investing.
Goldman Sachs Group
Investors Remain Concerned About Banking Crisis in Equities Market, New York
NEW YORK (dpa-AFX) – The recovery in the Dow Jones Industrial
The leading index Dow Jones Industrial
points down. The Nasdaq 100 held up on the Nasdaq technology exchange
In a “historic step,” as JPMorgan calls it, the troubled First Republic Bank had received support worth billions from the largest American financial institutions. The hesitant stabilization of the First Republic Bank papers of the previous days was dampened again on Friday. Your price dropped by a fifth. At a good $27, this is still well above Monday’s low of $17.53. SVB Financial, the parent company of Silicon Valley Bank – the cause of the current crisis – has meanwhile applied for bankruptcy protection under “Chapter 11” of US bankruptcy law.
Investors are eagerly awaiting how the US Federal Reserve will react to the crisis in the coming week. The day before, the monetary watchdogs in Europe had not been dissuaded from their anti-inflation course and had raised the key interest rate again significantly. Meanwhile, the experts at Credit Suisse expect the Fed to take a โrestrictive pauseโ. The turnaround in interest rates will be briefly suspended, but further steps will be signaled – so their theory.
Financial stocks recorded larger losses. The shares of the big banks JPMorgan
fell by around two and a half percent on the last places in the Dow Jones.
On the papers of the US pharmaceutical company Merck & Co
was weighed down by a study setback for a lung cancer drug. The shares lost around one percent.
Among the other individual values โโwere the papers of Deutsche Post competitor Fedex
The steel company US Steel
And analysts also moved the courses. The shares of the entertainment company Warner Bros. Discovery
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AXC0199 2023-03-17/15:07
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Bรถrse Express – ROUNDUP/Aktien New York Conclusion: Dow makes it into the plus
NEW YORK (dpa-AFX) – After a long lethargic trading session, the prices still gained momentum on Friday. The leading index Dow Jones Industrial
Looking back on the trading week, analyst Stephen Innes of SPI Asset Management wrote that investors had been betting on stronger growth in Europe and China and a easing in inflation in the USA. A slackening of inflation will allow the US Federal Reserve to slow down the pace of interest rate hikes in the coming months.
The market-wide S&P 500
increased more strongly with plus 0.71 percent to 11,541.48 points.
The prices of large banks, which had already published their quarterly reports before the starting bell, turned around astonishingly. JPMorgan
Bank of America
kicked off the season of quarterly numbers ahead of the weekend. If prices came under pressure in early trading, they turned back into the profit zone later on.
Most impressive was the turnaround in Wells Fargo stock. In the first few minutes of trading, the papers of the money house fell by 5.5 percent, but in the end they were up 3.3 percent. Similar, albeit less strong, were price patterns from Citigroup, Bank of America and JPMorgan. The latter even led the winners in the Dow with a premium of 2.5 percent. In the final quarter of 2022, the financial institutions exceeded market profit expectations.
Stockbrokers rated the quarterly figures from Delta Air Lines as disappointing
Tesla stocks
with minus 5.3 and minus 4.8 percent respectively.
A sell recommendation from Goldman Sachs weighed on shares in the armaments group Lockheed Martin
Virgin Galactic shares soared more than 12 percent. Previously, the provider of flights for space tourists had promised to start commercial space operations in the second quarter of 2023.
The Euro
— By Benjamin Krieger, dpa-AFX —
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AXC0298 2023-01-13/22:20
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Bรถrse Express – New York Equities Outlook: Moderate inflation in the US attracts many investors
NEW YORK (dpa-AFX) – Softer than hoped for US inflation data was very well received by investors ahead of the market on Tuesday. The indication of the IG broker for the Dow Jones Industrial
A drop in US inflation in November to just over seven percent, which was generally expected, would give a sigh of relief to those who saw price hikes get out of hand some time ago and the US Federal Reserve bucking this with a frantic hiking interest rate. Foreign exchange market expert Thu Lan Nguyen of Commerzbank had outlined this scenario.
Year-on-year inflation was now 7.1%. The omens are now in favor of the US Federal Reserve interest rate decision due on Wednesday evening. Nothing prevents the four sessions with an increase of 0.75 percentage points each time from a more moderate increase of 0.5 points this time.
After the previous evening’s economic data, the Oracle filings were laid
Pfizer papers have also seen significant price gains
Boeing was also in demand
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AXC0211 2022-12-13/14:54
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