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The stock market indices around the world have had a complicated week, after the failure of several banks in the United States and the fear of a banking crisis. However, after a strong mobilization of institutions, they are now up.
After the rain, the good weather. Panic had set in and the European stock markets had plunged, after the fall of several American banking institutions and the difficulties encountered by Credit Suisse. This Friday, they are expected to rise, while forecasts on central bank rates have been reduced.
By 10:00 a.m., Paris’ CAC 40 was up 0.92%, Frankfurt’s Dax was up 0.99%, London’s FTSE was up 1.16% and the EuroStoxx 50 was up 1.11%. Over the first four sessions of the week, the European Stoxx 600 index had lost nearly 2.7%.
Mobilization of banks
Faced with the situation, the Swiss Central Bank came to the support of the Swiss bank Credit Suisse, which helped to ease tensions on Thursday. Similarly, eleven American banks, including JPMorgan, agreed to inject 30 billion dollars into the coffers of First Republic Bank, on the verge of collapse, to avoid a domino effect after the failure of Silicon Valley Bank (SVB), Silvergate and Signature.
On Thursday, the European Central Bank opted for a half-point rate hike. It was also keen to reassure, explaining that the banks in the euro zone were solid and that the rise in interest rates should strengthen their margins. Euribor contracts, the barometer of market expectations, suggest that investors have fully priced in a quarter-point increase at the next meeting in May.
The markets, for their part, are anticipating a quarter-point increase next week, although the probability of a status quo is also estimated at 20%.
World stock markets rebound
In the United States, the New York Stock Exchange closed higher on Thursday, buoyed by a rebound in the financial sector after the major banks decided to rescue First Republic Bank. The bank’s stock closed up 10%, but was down 17% in after-hours trading, partly due to an announced dividend suspension.
At around 10 a.m., the Dow Jones Industrial Average gained 1.17%, the S&P-500 gained 1.76%, while the Nasdaq Composite advanced 2.48%.
In Asia, the Nikkei index of the Tokyo Stock Exchange gained 1.2% thanks to banking and electronics stocks, while the CSI 300 index of large caps in mainland China gained 0.50% and the Shanghai SSE Composite 0.73%.
Currencies down, oil up
As for exchange rates, the dollar is down against other major currencies (-0.32%), including the euro, which is back at 1.0646, while the yield on 10-year U.S. Treasury bonds is down slightly at 3.5525%.
For its part, the price of oil rose by more than 1% following profit taking. Brent crude gained 0.64% to $75.18 a barrel, and U.S. light crude (West Texas Intermediate, WTI) rose 0.66% to $68.8.
Read also >Bankruptcy of the SVB : are we heading for a new financial crisis?
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The stock market indices around the world have had a complicated week, after the failure of several banks in the United States and the fear of a banking crisis. However, after a strong mobilization of institutions, they are now up.
After the rain, the good weather. Panic had set in and the European stock markets had plunged, after the fall of several American banking institutions and the difficulties encountered by Credit Suisse. This Friday, they are expected to rise, while forecasts on central bank rates have been reduced.
By 10:00 a.m., Paris’ CAC 40 was up 0.92%, Frankfurt’s Dax was up 0.99%, London’s FTSE was up 1.16% and the EuroStoxx 50 was up 1.11%. Over the first four sessions of the week, the European Stoxx 600 index had lost nearly 2.7%.
Mobilization of banks
Faced with the situation, the Swiss Central Bank came to the support of the Swiss bank Credit Suisse, which helped to ease tensions on Thursday. Similarly, eleven American banks, including JPMorgan, agreed to inject 30 billion dollars into the coffers of First Republic Bank, on the verge of collapse, to avoid a domino effect after the failure of Silicon Valley Bank (SVB), Silvergate and Signature.
On Thursday, the European Central Bank opted for a half-point rate hike. It was also keen to reassure, explaining that the banks in the euro zone were solid and that the rise in interest rates should strengthen their margins. Euribor contracts, the barometer of market expectations, suggest that investors have fully priced in a quarter-point increase at the next meeting in May.
The markets, for their part, are anticipating a quarter-point increase next week, although the probability of a status quo is also estimated at 20%.
World stock markets rebound
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The stock market indices around the world have had a complicated week, after the failure of several banks in the United States and the fear of a banking crisis. However, after a strong mobilization of institutions, they are now up.
After the rain, the good weather. Panic had set in and the European stock markets had plunged, after the fall of several American banking institutions and the difficulties encountered by Credit Suisse. This Friday, they are expected to rise, while forecasts on central bank rates have been reduced.
By 10:00 a.m., Paris’ CAC 40 was up 0.92%, Frankfurt’s Dax was up 0.99%, London’s FTSE was up 1.16% and the EuroStoxx 50 was up 1.11%. Over the first four sessions of the week, the European Stoxx 600 index had lost nearly 2.7%.
Mobilization of banks
Faced with the situation, the Swiss Central Bank came to the support of the Swiss bank Credit Suisse, which helped to ease tensions on Thursday. Similarly, eleven American banks, including JPMorgan, agreed to inject 30 billion dollars into the coffers of First Republic Bank, on the verge of collapse, to avoid a domino effect after the failure of Silicon Valley Bank (SVB), Silvergate and Signature.
On Thursday, the European Central Bank opted for a half-point rate hike. It was also keen to reassure, explaining that the banks in the euro zone were solid and that the rise in interest rates should strengthen their margins. Euribor contracts, the barometer of market expectations, suggest that investors have fully priced in a quarter-point increase at the next meeting in May.
The markets, for their part, are anticipating a quarter-point increase next week, although the probability of a status quo is also estimated at 20%.
World stock markets rebound
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