After Credit Suisse and Silicon Valley Bank were saved, worries about the global banking crisis started to go away on Wednesday. This made the stock markets around the world go up.
Earlier this month, regulators around the world announced plans to help lenders raise cash. This was done to ease worries about the banking sector.
US stocks
On Wednesday, US stocks went up, with the S&P 500 going up 1.4% to 4,027.81. At 32,717.60, the Dow Jones Industrial Average went up 1%, and at 11,926.24, the Nasdaq Composite went up 1.8%.
US treasury yields went up because investors rethought their expectations for monetary policy from central banks because they were worried about inflation.
The 2-year treasury note’s yield went up by 3.9 basis points (bps) to 4.101%.
European equities
Wednesday was a good day for European stocks. Banks led the way, going up. The benchmark index for all of Europe, the STOXX 600, went up 1.3%. In Switzerland, UBS shares went up as much as 5% after the company named Sergio Ermotti, its former CEO, to lead its takeover of Credit Suisse.
Credit Suisse surged 4%.
The DAX went up 1.2% to 15,328.78. At 7,186.99, the CAC 40 in France was up 1.4%.
At 7,564.27, the FTSE 100 in Britain went up by 1.1%.
On Wednesday, the Bank of England (BoE) tried to ease investors’ fears that the US banking crisis could spread to UK banks.
The BoE’s financial policy committee said that UK banks are still strong and aren’t really affected by what’s going on in the sector in Switzerland and the US. “UK banks are not directly at risk of material losses from the failure of (US bank) SVB and the takeover of Credit Suisse, and they don’t have much direct exposure to regional US banks either,” the report said.
Stocks in Asia
Wednesday, Asian stocks went up because Alibaba, a Chinese tech giant, said it was going to split into six business units.
Alibaba’s stock in Hong Kong went up by more than 12% after the company said it would split its $220 billion business into six units.
Alibaba said that the changes were made to bring more value to shareholders and make the market more competitive.
The Hang Seng index in Hong Kong went up 2.1% to 20,192.40, while the Shanghai Composite fell 0.2% to 3,240.06. The Kospi in South Korea was flat.
The Nikkei 225 in Japan went up 1.3% to 27,883.78 and the S&P-ASX 200 in Australia went up 0.2% to 7,050.30 billion
Gold prices went down because stock markets were going up and the dollar was strong. US gold futures went down 0.3% to $1,966.90 an ounce.
Bitcoin went up 3.8% to $28,356.34, and Ether went up 1.8% to $1,806.65.
Source: Team CurrencyVeda