Banks crisis fuels speculation

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Banks crisis fuels speculation

The banking crisis has boosted disparate assets, with traditional safe-havens such as gold, Treasuries and money markets seeing high demand as well as more speculative instruments such as tech stocks andBitcoin.

The financial distress that started earlier this month with the collapse of California's Silicon Valley Bank has spread to Europe, with investors worried about the health of the financial system even after UBS Group agreed to buy ailing Credit Suisse in a state-backed takeover and major central banks took measures to reassure markets.

The banking woes threaten to slow growth, as investors bet the Federal Reserve and other central banks slowing interest rate hikes in order to keep the economy healthy, as the financial sector troubles have caused rapid repositioning of asset markets.

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