According to “Bloomberg Markets: Europe,” analysts and investors are monitoring the US banking sector.
While there is pressure on regional banks, it is not yet a systemic crisis.
There are still over 4,000 banks in the US, with only a few considered systemically important.
Although growth may be impacted, it may take months before a credit contraction occurs.
In terms of data, job reports and CPI readings are coming up, and the market is expecting a pause and cut from the Fed.
However, the Fed is still open to hiking rates again, and the job data remains strong, challenging the idea of an imminent US recession.
Inflation is also still a concern, with inflation rates more than twice the target, but it is not coming down quickly enough to justify a complete collapse in yields.
