7:01 a.m. ET, March 17, 2023
Global markets rebound after US lenders rescue First Republic Bank
By CNN’s Laura He and Anna Cooban
Markets in Europe and Asia rebounded on Friday after First Republic Bank was bailed out by a group of major U.S. lenders, easing concerns about the current banking turmoil.
“Some optimism has returned to markets over the past 24 hours, with banking stocks stabilizing on both sides of the Atlantic,” Deutsche Bank analysts said in a note Friday.
European stocks posted gains on Thursday as investors were reassured by news that Credit Suisse would tap into a lifeline offered by the Swiss National Bank, borrowing up to 50 billion Swiss francs ($53.7 billion ).
The rally in Europe continued through Friday, although gains were modest. The benchmark Stoxx Europe 600 index rose 0.3% in early trading. The German DAX (DAX) and the French CAC 40 (CAC40) rose 0.4% and 0.07% respectively.
Europe’s Stoxx Europe 600 Banks index, which tracks 42 major European and UK banks, also opened higher, before trading flat by mid-morning. The index had fallen 13% in the week to Thursday’s close.
The London-heavy FTSE 100 (UKX) edged up 0.6%.
But shares of Credit Suisse (AMJL) fell 5% in early trading, eroding gains made on Thursday, a sign that investor confidence in the bank’s future has not been fully restored.
In Asia, Hong Kong’s Hang Seng (HSI) closed up 1.64%, China’s Shanghai Composite gained 0.73%, Japan’s Nikkei (N225) rose 1.2% and South Kospi -Korean gained 0.8% at the close of the market. The increases followed larger declines on Thursday.