• The ASX fell 1.6% on Tuesday on concerns of a global meltdown following SVB’s collapse
  • Gold stocks and Bitcoin gained as Treasury yields collapsed
  • Goldman Sachs now expects the Fed to keep rates on hold this month


The ASX 200 fell 1.6% on Tuesday as concerns around the collapse of Silicon Valley Bank reverberated through Asian markets.

All 11 sectors on the ASX fell – led by Energy and Tech stocks with a 3% drop each, while the Financial sector fell 1.3%.

Overnight, US regional banks staged a mini crash with shares like First Republic Bank falling by over 60%.

Wall Street was in panic mode despite assurances from US Fed regulators who took swift and aggressive action to stem the bank run on SVB and other regional banks.

President Biden also attempted to calm Americans, saying that no losses will be borne by taxpayers, and the money will come from insurance fund fees.

The rout in equities led to a rally in the bond and gold markets as investors took their money to so called safe havens.

The benchmark Aussie 10-year government yield tumbled by 18bp as bond prices rose, while the policy sensitive 2-year yield was down almost 30bp.

The free fall in yields have led some experts to believe that the central bank’s hiking cycle could be over.

“Two-year yields below cash rates tell you that the hiking cycle will end, it just doesn’t tell you when,” said Amy Xie Patrick, head of fixed income strategies at Pendal Group told Bloomberg.

Goldman Sachs now expects the Fed to keep rates on hold at its March 21-22 meeting, while current Fed futures are showing a 70% probability the Fed will raise them by 25bp.

Gold stocks continued their ascent on flight to safety.

“Gold is still a safe-haven,’” said Oanda analyst, Edward Moya.

“It took an unexpected bank run in the digital age and the largest three-day collapse with the 2-year Treasury yield since Black Monday for Wall Street to remember that in uncertain times,  some investors feel secure in holding gold. “

The best performing large cap today was Neuren Pharma (ASX:NEU), which lifted another 10% following yesterday’s 20% gain after receiving a “historic” world’s first approval for a Rett syndrome drug, DAYBUE (trofinetide), yesterday.

Bitcoin has meanwhile rallied by around 10% to US$24,475 as financial stability risks sent bond yields crashing.

“Bitcoin volatility should remain elevated and it will be interesting to see how much momentum will be left with today’s surge,” said Moya.



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Code Name Price % Change Volume Market Cap
NEU Neuren Pharmaceut. 9.92 9.13 2,394,065 $1,147,754,995
PRU Perseus Mining Ltd 2.12 4.19 5,501,187 $2,775,950,119
GOR Gold Road Res Ltd 1.53 3.56 5,280,856 $1,589,879,586
MEZ Meridian Energy 4.94 2.92 15,418 $6,064,869,298
CEN Contact Energy Ltd 7.17 2.87 4,443 $1,744,738,604
MCY Mercury NZ Limited 5.94 2.77 19,635 $8,011,126,020
NCM Newcrest Mining 24.66 2.64 5,333,309 $21,466,885,904
CMM Capricorn Metals 4.48 2.64 2,670,197 $1,638,305,643
SGP Stockland 3.80 2.57 10,661,995 $8,832,535,149
NSR National Storage 2.54 2.42 5,818,512 $2,993,739,393
SKC Skycity Ent Grp Ltd 2.20 2.33 480,623 $1,634,441,199
PPH Pushpay Holdings Ltd 1.16 2.21 464,031 $1,290,879,394
NST Northern Star 11.26 1.58 7,357,736 $12,741,395,697
GOLD Gblx GOLD 26.57 1.49 288,987 $2,858,283,967
AIA Auckland Internation 8.03 1.26 1,138,570 $11,677,330,516
RGN Region Group 2.43 1.04 4,233,712 $2,757,345,578
SPK Spark New Zealand 4.62 0.98 1,486,257 $8,560,515,573
BRG Breville Group Ltd 19.31 0.94 302,593 $2,731,407,512
REA REA Group 125.11 0.85 222,483 $16,389,140,769
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Gold miners like Perseus Mining (ASX:PRU), Capricorn Metals (ASX:CMM) and Gold Road (ASX:GOR) were some of the best performers today, up by around 4%.

Utilities / oil stocks Mercury Energy (ASX:MCY) and Meridian Energy (ASX:MEZ) also gained 2% despite oil prices being pushed lower overnight as fears of a potential global financial crisis bruised sentiment.



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Code Name Price % Change Volume Market Cap
YAL Yancoal Aust Ltd 0.06 -16.84 6,772,546 $9,058,214,538
GRR Grange Resources. 0.82 -8.43 3,759,860 $1,030,031,441
WBT Weebit Nano Ltd 7.55 -8.15 1,732,749 $1,427,327,828
CPU Computershare Ltd 21.99 -7.33 2,924,951 $14,326,497,143
PPT Perpetual Limited 21.44 -6.80 902,970 $2,579,702,678
SYR Syrah Resources 1.65 -6.53 1,675,691 $1,183,518,864
VUK Virgin Money Uk PLC 2.71 -6.40 6,646,065 $2,090,204,676
PLS Pilbara Min Ltd 3.66 -6.04 34,065,787 $11,662,272,589
CXO Core Lithium 0.87 -5.95 14,433,431 $1,715,890,534
MFG Magellan Fin Grp Ltd 7.92 -5.77 2,319,462 $1,524,683,017
SMR Stanmore Resources 3.34 -5.65 1,479,138 $3,190,926,384
PDN Paladin Energy Ltd 0.63 -5.64 17,303,259 $1,981,764,974
CGF Challenger Limited 6.56 -5.61 2,155,797 $4,753,231,615
WHC Whitehaven Coal 6.73 -5.61 9,525,097 $6,340,367,908
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Coal stocks Yancoal (ASX:YAL) dropped 16% as it goes ex-dividend, and Whitehaven (ASX:WHC) also sold off 6% on sentiment.

Computershare (ASX:CPU) was down 7% on no news.

Market operator ASX (ASX:ASX) fell 0.15% after non-executive and former chair of ASX Clear and ASX Settlement Rob Woods resigned from the ASX board today.