Author: Anne Bornay | EFE
Sabadell, hardest hit by Monday’s losses, advances 4.2%
The stock market is starting to recover after the turbulence that triggered the bankruptcies Silvergatehe signature and Silicon Valley Bank.
Although several other regional US banks are in the crosshairs with a negative outlook (Comerica, Zions, UMB Financial, Intrust and Western Alliance), it seems that the firewall installed by US regulators on Sunday to prevent cascading bankruptcies is starting to have an effect.
Wall Street It opened this Tuesday with widespread gains and with the hardest hit banks regaining some of their lost ground. That is the case First Republic Bank, which after sinking 65% in just one day, rebounded 54%, paring some of its losses. Large entities such as Wells Fargo (5.3%), Citigroup (5.30%) or Bank of America (2.49%) also advanced in the early stages of the session.
The Federal Reserve (The Fed) has launched an investigation to find out what went wrong, and the Treasury Department has deployed a bailout fund that is available to financial institutions in need. So far, the banking crisis appears to be under control, although Moddy’s believes the pressures will persist, exacerbated by the rapid growth and allegations that interest rates have been hit. Unlike Goldman Sachs, its analysts believe that the Fed will not press the brakes, since inflation continued to rise in the last month compared to January: «Our base case is that monetary tightening continues, which could deepen the challenges of some banks.
Ibex recovery
Eurozone financial institutions remain shielded. Despite losses on the stock market on Monday, caused by investors’ aversion to risk, companies recovered their pulse on Tuesday with a strong recovery. Spanish selection (IBEX 35), which fell 3.5% yesterday, is growing the fastest at the moment, at a rate of 2%.
Bank Sabadell, which led losses (11%) last day, advances 4%. Caixabank makes it 3.9%; BBVA 3.1%; Santander 2.8%; Bankinter another 2.7% and Unicaja 2.3%.
Germany’s DAX rallied 1.65%, although its values struggled to recoup losses on Monday. Commerzbank is up 3.3%, although it fell 12.7% yesterday. Deutsche Bank, which fell 4.9%, advanced 2.6%.
The Paris stock market also rebounded by almost 2%, twice as much as the London market.
Source: La Vozde Galicia
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
