Home ›› 28 Mar 2023 ›› Stock
European stock markets rebounded slightly Monday after US lender First Citizens bought most of collapsed rival Silicon Valley Bank, easing fears of a sector crisis.
Frankfurt rallied 1.3 per cent, with shares in troubled Deutsche Bank surging more than five per cent after diving Friday on investor fears over its financial health.
London and Paris stocks also jumped, with British lender Barclays and French peer BNP Paribas each gaining about two per cent.
Oil rose modestly after slumping on demand fears before the weekend, while the dollar largely steadied.
The US Federal Deposit Insurance Corporation (FDIC) announced that First Citizens agreed to buy the deposits and loans of SVB, whose collapse this month had sparked fears of a global contagion. Analysts remained cautious over the outlook.
“European stock markets bounced... as relative calm returned amid the choppy seas of the banking ‘crisis’ as a buyer was found for Silicon Valley Bank’s assets,” said analyst Neil Wilson at trading firm Finalto.
The news helped “lift sentiment across the banking sector after a rocky end to last week, though the pall of banking stress still hangs over the market”.
The IMF also injected a note of caution.
International Monetary Fund chief Kristalina Georgieva on Sunday warned that risks to financial stability had increased -- and stressed “the need for vigilance” following the turmoil.
