Global stock markets rallied on Tuesday, with a surge in bank shares as fears of banking crisis eased. Investors’ sentiments were boosted by the raft of measures taken by regulators to stabilize the banking sector.
Global stock markets rallied on Tuesday, with a surge in bank shares as fears of banking crisis eased. Investors’ sentiments were boosted by the raft of measures taken by regulators to stabilize the banking sector.
US stocks
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US stocks gained on Tuesday on signs of stabilizing banking sector.
The S&P 500 gained 1.29% to end at 4,002.41. The Dow Jones Industrial Average rose 0.97% to 32,566.44. The Nasdaq Composite surged 1.55% to 11,860.04.
Treasury secretary Janet Yellen on Tuesday told US bankers that she is ready to intervene to protect depositors at smaller banks if they face deposit runs.
Yellen said that overall “the situation is stabilizing”. “And the US banking system remains sound,” added Yellen.
Stocks of US banks surged.
Shares of First Republic Bank soared 60% during intraday on Tuesday after a news report that JPMorgan CEO Jamie Dimon is leading talks with other lenders aimed at investing in the bank.
The Federal Reserve has introduced a new lending tool for banks in an effort to prevent a repeat of Silicon Valley Bank collapse.
Investors globally breathed a sigh of relief on Monday after UBS agreed to takeover Credit Suisse.
Investors are now awaiting US Federal Reserve’s decision on interest rates on Wednesday.
European stocks surged more than 1% on Tuesday with the pan-European STOXX 600 climbing 1.3%.
European bank shares led the market’s rally with the Europe’s banking index rising 3.8%.
Credit Suisse shares jumped 7.3% and UBS gained 12.1%.
Germany’s DAX rose 1.8% at 15,194.77. France’s CAC 40 added 1.4% at 7,112.91. Britain’s FTSE 100 gained 1.8% at 7,536.22.
Shares in Asia soared on Tuesday following the gains in the US and European markets on Monday.
Hong Kong’s Hang Seng index rose 1.4% at 19,258.76. Shanghai Composite index advanced 0.6% at 3,255.65.
Japan’s stock market was closed for a holiday.
Australia’s S&P/ASX 200 index closed up 0.8% at 6,955.40 points, led by a 1.2% gain in financials.
Oil prices on Tuesday rose for second consecutive day. Benchmark US crude oil for April delivery rose $1.69 to $69.33 a barrel. Brent crude for May delivery up $1.53 to $75.32 a barrel.
Gold dipped 2% on Tuesday. Gold for April delivery dropped $41.70 to $1,941.10 an ounce. Silver for May delivery fell 22 cents to $22.43 an ounce.
