As concerns over a banking crisis subsided, bank shares surged on Tuesday, helping to boost global stock markets. The multitude of steps taken by regulators to stabilise the banking sector bolstered investor optimism.
US markets rose on Tuesday as a result of the banking sector’s stabilisation.
S&P 500 increased 1.29% to close at 4,002.41. To 32,566.44, the Dow Jones Industrial Average increased by 0.97%. To 11,860.04, the Nasdaq Composite rose 1.55%.
Janet Yellen, the secretary of the Treasury, said to American bankers on Tuesday that she is prepared to step in to defend depositors at smaller banks against run-ons.
Overall, “the situation is stabilising,” according to Yellen “. Additionally, the American banking system is still solid “insisted Yellen.
American bank stocks rose sharply.
After a news report that JPMorgan CEO Jamie Dimon is leading discussions with other lenders aimed at investing in the bank, First Republic Bank shares surged 60% intraday on Tuesday.
In an effort to avoid a repeat of the failure of Silicon Valley Bank, the Federal Reserve has developed a new lending tool for banks.
On Monday, after UBS and Credit Suisse reached an agreement, investors all over the world heaved a sigh of relief.
Investors are currently anticipating the US Federal Reserve’s interest rate decision on Wednesday.
Equities in Europe
The pan-European STOXX 600 index rose 1.3% on Tuesday, with European stocks rising more than 1%.
The market’s uptick was driven by gains in European bank shares, which increased 3.8%.
UBS increased 12.1%, while Credit Suisse shares increased 7.3%.
The DAX in Germany gained 1.8% to 15,194.77. The CAC 40 in France increased 1.4% to 7,112.91. The FTSE 100 in Britain increased 1.8% to 7,536.22.
After Monday’s gains in the US and European markets, shares in Asia jumped on Tuesday.
The Hang Seng index for Hong Kong increased 1.4% to 19,258.76. At 3,255.65, the Shanghai Composite index saw a 0.6% increase.
The stock market in Japan was closed due to a holiday.
The banking sector’s 1.2% increase helped Australia’s S&P/ASX 200 index settle up 0.8% at 6,955.40 points.
Tuesday saw an increase in oil prices for the second straight day. US crude oil benchmark for April delivery increased $1.69 to $69.33 a barrel. Brent crude increased $1.53 to $75.32 a barrel for May delivery.
Tuesday saw a 2% drop in gold. A troy ounce of gold for April delivery fell by $41.70 to $1,941.10. At $22.43 per ounce for May delivery, silver price dropped 22 cents.