Global markets rebound after US lenders rescue First Republic Bank

CNN: Markets in Europe and Asia rebounded yesterday after First Republic Bank was rescued by a group of major US lenders, easing worries about the current banking turmoil.

“Some optimism has returned to markets over the last 24 hours, with bank stocks stabilising on both sides of the Atlantic,” Deutsche Bank analysts said in a note yesterday.

First Republic Bank (FRC) is set to receive a US $ 30 billion lifeline from a group of America’s largest banks, including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (CBEAX), Citigroup (C) and Truist (TFC).
The news calmed investors, who were on tenterhooks over a potential banking crisis following the collapse of two US banks and the maelstrom at Credit Suisse (CSGKF) over the past week. On Thursday, US stocks closed higher, with tech shares staging a rally.

European shares posted gains Thursday as investors were reassured by news that Credit Suisse would tap a lifeline offered by the Swiss National Bank, borrowing up to 50 billion Swiss Francs (US $ 53.7 billion).

The rally in Europe carried over to yesterday, although gains were modest. The benchmark Stoxx Europe 600 index rose 0.3 percent in early trade. Germany’s DAX (DAX) and France’s CAC 40 (CAC40) ticked up 0.4 percent and 0.07 percent, respectively.