Bank Stress Tests Could Show Several Banks Need Capital
The US Federal Reserve is expected to release results of the bank stress tests today and speculation is that up to ten of the nineteen banks tested require additional capital to remain solvent. More
Dollar Gains on Euro
The dollar gained on the euro today as investors wait for word from the European Central Bank on this week’s interest rate decision. More
Oil Remains Above $54 on Recovery Hopes
Crude oil prices for June delivery remained above $54 a barrel this morning in Europe as investors speculate that demand will increase as summer approaches. More
3-Month LIBOR Falls Below 1%
The 3-Month London Interbank Offered Rate (LIBOR) – the benchmark rate that sets the interest rate banks charge to lend each other money – fell below 1 percent for the first time today. The lower LIBOR rate – and the resulting closing of the gap between LIBOR and the Overnight Indexed Swap (OIS) rates – is seen as an indicator of increased willingness for banks to provide liquidity to the financial system.
“Confidence is returning to the market, so I would say so far so good,†said Brian Delany, a money-market trader on the dollar desk at Bank of Ireland Plc in Dublin. More
