SEC TARGETS BINANCE ASSETS

The U.S. Securities and Exchange Commission (SEC) has taken a significant legal step in its action against Binance.US, Binance Global, and CEO Changpeng Zhao, by seeking a temporary restraining order to freeze assets linked to Binance.US. The reason for this move is due to the lack of compliance and control failures by Binance.US and its affiliated entities, which has allegedly enabled unauthorized access to customers’ funds. The SEC’s aim is to protect customers’ assets by seeking court approval for this restraining order, which will enable the seizure of Binance.US assets as well as prevent the dissipation of available resources.

BANKS’ STOCKS RISE

U.S. banks experienced an increase in their stocks following a challenging period caused by concerns over deposit withdrawal, rising interest rates, and commercial real estate. Major banks like Wells Fargo, Goldman Sachs, Morgan Stanley, Citigroup, and Bank of America saw increases ranging from 1.6% to 2.8%. Meanwhile, regional banks like PacWest Bancorp, Western Alliance, Zions Bancorp, Comerica, Trust Financial and KeyCorp also rose with figures ranging from 4.4% to 7%. Moreover, the KBW Regional Banking Index saw growth and reached its highest peak since mid-April, nevertheless, investors still remain uncertain about the health of the banking sector, particularly due to the index’s 20.6% decline this year.

SLOW RECOVERY

According to the Organisation for Economic Cooperation and Development (OECD), the global economy is expected to face a challenging recovery from the impacts of Covid-19 and the conflict in Ukraine. The latest Economic Outlook reports predict a modest 2.7% increase in world output this year, with a slow 2.9% increase in 2024 – both lower than the pre-pandemic average. Furthermore, recovery in the U.S., Eurozone, and China is also predicted to be slow, while inflation is expected to be higher than in 2019.

FLUCTUATIONS IN OIL PRICES

Oil prices have been fluctuating as traders attempt to balance the impact of Saudi Arabia’s decision to cut supply with the overall uncertainty surrounding the global economy. The shift has seen West Texas Intermediate futures increase to above $72 a barrel, following a previous decline. Recent developments, including the OECD’s weak expectations for the global economy and China’s mixed trade data for May, which showed strong imports but a drop in exports, have contributed to a nearly 10% decline in oil prices since January. Additionally, the latest reports from the American Petroleum Institute have indicated a decline in crude inventories in the U.S., but it also reported gains in gasoline and distillate stockpiles.

MORTGAGE RATES DECLINE

Despite a slight decrease in interest rates for a 30-year fixed-rate mortgage, buying or refinancing homes has become less popular, with applications dropping for the fourth week in a row. Although the average interest rate has gone down from 6.91% to 6.81%, it is still the second-highest rate of the year. Furthermore, the decline in home loan refinancing has been significant, with a decrease of 1% – much lower than the previous year. Similarly, people are showing less interest in purchasing homes, with a drop of 2% from the previous week. Experts explain that these decreases may be due to the increased rates, fewer homes available for purchase, and a lack of incentives to refinance.