MUMBAI: Late Sunday night decision by US regulators on troubled First Republic Bank and US Federal Reserve meeting outcome on May 3 may keep global markets volatile after last week’s bullish moves. The Indian market will be closed on May 1 to celebrate Maharashtra day and will react to these developments only on Tuesday.
San Francisco headquartered First Republic Bank, whose share price fell over 40 per cent on Friday, is the third major US bank to fail after Silicon Valley Bank and Signature Bank in the last two months. US regulators were trying to sell First Republic Bank over the weekend to potential bidders with bids due by Sunday noon, as per reports.
“A deal is expected to be announced on Sunday night before Asian markets open, with the regulator likely to say at the same time that it had seized the troubled bank,” a report said.
The Asian market's opening and global markets on Monday will be closely watched by domestic market participants.
The US Fed is widely expected to raise interest rates by 25 basis points for the 10th time to 5 per cent to 5.25 per cent range in a bid to bring inflation down to 2 per cent.
