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7:01 a.m. ET, March 17, 2023
Global markets rebound after US lenders rescue First Republic Bank
Markets in Europe and Asia rebounded Friday after First Republic Bank was rescued by a group of major US lenders, easing worries about the current banking turmoil.
“Some optimism has returned to markets over the last 24 hours, with bank stocks stabilizing on both sides of the Atlantic,” Deutsche Bank analysts said in a note Friday.
European shares posted gains Thursday as investors were reassured by news that Credit Suisse would tap a lifeline offered by the Swiss National Bank, borrowing up to 50 billion Swiss Francs ($53.7 billion).
The rally in Europe carried over to Friday, although gains were modest. The benchmark Stoxx Europe 600 index rose 0.3% in early trade. Germany’s DAX (DAX) and France’s CAC 40 (CAC40) ticked up 0.4% and 0.07% respectively.
Europe’s Stoxx Europe 600 Banks index, which tracks 42 big EU and UK banks, also opened higher, before trading flat by mid-morning. The index had fallen 13% in the week to Thursday’s close.
London’s bank-heavy FTSE 100 (UKX) inched up 0.6%.
But shares in Credit Suisse (AMJL) fell as much as 5% in early trade, eating into gains made Thursday, in a sign that investor confidence in the bank’s future has not been completely restored.
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