European banking stocks are rising following sharp losses last week
European stocks jumped today, Monday, as some calm returned to the markets following a week of turmoil over concerns regarding the stability of the banking sector in the wake of the collapse of Credit Suisse and two medium-sized US banks.
The pan-European STOXX 600 rose 0.9% following news of a deal through which First Citizens Bankers would take over deposits and loans of Silicon Valley gave investors a sense of relief.
And European banking shares rose 0.9%, following recording losses of 3.8% on Friday, when the decline in shares of “Deutsche Bank” raised concerns in the sector. Shares of the German bank rose 3.3% following plunging 8.5% on Friday, according to Archyde.com.
Shares in Swiss bank UBS, which acquired smaller rival Credit Suisse in a bailout deal last week, fell 0.8% to trade down nearly 15% from their highs in early March.
Shares of “Credit Suisse” compensated for some of the losses and rose 0.4% following the announcement of the Swiss Financial Market Supervisory Authority (FINMA) at the weekend that it is considering whether to take disciplinary action once morest the bank.
European stocks are looking to end the first quarter of the year on a high amid signs of economic resilience and hopes that central banks are close to halting monetary tightening cycles, but European banks are close to ending the quarter on a somewhat stable note amid banking sector turmoil.
