- While measures to strengthen the financial system helped to restore trust, European equities rose for a second day and American futures pointed to a better opening for Wall Street.
- The Stoxx Europe 600 increased by as much as 1.4%, propelled by a 3.5% increase in a banking stock index. Futures for the S&P 500 increased following news that US authorities are looking into temporary guarantees for all bank deposits on Monday helped the underlying index.
- First Republic Bank's share price increased by as much as 20% in premarket US trade after JPMorgan offered to assist the troubled institution. Shares of other local lenders also made slight gains.
- Investors are cautiously moving back into riskier assets, reversing the early Monday selloff that followed a government-brokered acquisition of Swiss rival UBS by Credit Suisse. With promises from EU and UK regulators on the risky debt category, which seized up after Credit Suisse shareholders took precedence over the holders of more than $16 billion in AT1s, bank additional tier 1 bonds recovered in Europe and Asia.
- Traders raise ECB tightening bets, now favouring a 25 BPS increase in May.
