tl;dr
Depositors are withdrawing billions of dollars from traditional banks, with a $197.7 billion decrease in domestic deposits in the second quarter of this year, marking a 1.1% decline. This comes after a $190.7 billion increase in deposits in the first quarter. Money market funds have seen a surge in ...
Depositors are withdrawing billions of dollars from traditional banks, with a $197.7 billion decrease in domestic deposits in the second quarter of this year, marking a 1.1% decline. This comes after a $190.7 billion increase in deposits in the first quarter.
Money market funds have seen a surge in capital, reaching over $6.54 trillion as of June, as investors seek lower-risk and short-term debt securities, including US Treasuries, due to competitive rates compared to traditional bank savings accounts.
The influx into money market funds began in 2022 when the Fed raised interest rates to combat inflation, boosting yields in short-term Treasuries.
Depositors are pulling billions of dollars out of the traditional banking system, according to a new report from the Federal Deposit Insurance Corporation (FDIC). The agency’s new quarterly banking profile says domestic deposits decreased $197.7 billion in the second quarter of this year. That’s a 1.1% decline and a reversal from Q1, when US banks witnessed a $190.7 increase in deposits.
The deposit flight comes as historic amounts of money continues to pile into money market funds, which have offered highly competitive rates compared to traditional bank savings accounts in recent years. New numbers from the Federal Reserve Economic Data (FRED) show the amount of capital invested in money market funds has soared to over $6.54 trillion as of June of this year, a number that’s surged every quarter since the end of 2022.
Money market funds allow people to easily get exposure to lower-risk and short-term debt securities including US Treasuries.
Investors began flocking to the funds in 2022 when the Fed began to aggressively raise interest rates in an effort to stifle soaring inflation, significantly boosting yields in short-term Treasuries.
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OceanPal Inc. - Technical Analysis Summary
OceanPal Inc. is focused on providing ocean freight services.
ENERGY & TRANSPORTATION
DEEP SEA FOREIGN TRANSPORTATION OF FREIGHT
Volume: 12,209,300
Relative Strength Index (14): 3.475
Moving Average Convergence Divergence (MACD): -3.43
Chaikin Money Flow: -0.581
On-Balance Volume: 22,098,000
Parabolic SAR: 0
Bollinger Bands: 0.249
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Technical Analysis Report Interpreting Market Trends: A Technical Analysis Perspective
Our analysis of the stock market charts and indicators reveals a potential breakout above the key resistance level, signaling a bullish trend in the near term. The Relative Strength Index (RSI) is showing strong upward momentum, supporting the bullish outlook.
However, it's important to note that the stock price is approaching a significant long-term resistance level, which could lead to a temporary pullback. The Bollinger Bands are widening, indicating increased volatility and the possibility of a reversal in the short term.
Given these factors, investors should closely monitor the price action around the resistance level. A sustained breakout above this level would reaffirm the bullish momentum, while a failure to surpass it might trigger a corrective move.
As always, it's crucial to consider the inherent uncertainties in market analysis and to implement risk management strategies to navigate potential downside risks.
Stay tuned for further updates as the market dynamics evolve.
More about CME Group Inc
CME Group Inc. operates as the world's largest financial derivatives exchange, facilitating trading in various asset classes including agricultural products, currencies, energy, interest rates, metals, stock indexes, and cryptocurrencies futures. The company's market cap stands at $79.67 billion, with a current stock price of $227.86.
In the past year, CME Group Inc. has shown a 4.5% dividend yield, with a 9.08% return on equity. Its price-to-earnings ratio is 24.37, while the price-to-book ratio is 16.11. The company holds $5.78 billion in cash and cash equivalents, with a debt-to-equity ratio of 0.571.
As a leading player in the finance, security & commodity brokers, dealers, exchanges & services sector, CME Group Inc. remains a significant force in the global markets landscape.