PARIS (Reuters) – The main European stock markets are moving up on Monday in the first trade after the panic on Friday around Deutsche Bank, the appetite for risk being fueled by bargain buying and reassuring statements from the authorities.

In Paris, the CAC 40 took 0.84% ​​to 7074.26 points around 08:30 GMT. In London, the FTSE 100 advances by 0.86% and in Frankfurt, the Dax gains 0.79%.

The EuroStoxx 50 index rose by 0.73%, the FTSEurofirst 300 by 1.09% and the Stoxx 600 by 0.9%.

Futures contracts on Wall Street are also pointing to an increase of 0.43% for the Dow Jones and 0.15% for the Standard & Poor’s 500. The Nasdaq, on the other hand, could retreat by 0.22% as bond yields start to rise again. the rise.

Deutsche Bank unscrewed on the stock market on Friday and its “credit default swap” (CDS), the cost of insurance against a risk of default, climbed to the highest since the end of 2018, investors fearing a domino effect after the rescue plan in emergency of Credit Suisse, bought by competitor UBS.

The authorities in Europe and the United States, however, reassured about the solidity of the financial and banking system. Minneapolis Federal Reserve Chairman Neel Kashkari said Sunday that U.S. central bank officials are watching the current situation “very, very closely” to determine whether banking stress will lead to a credit crisis that could tip the economy in recession.

Philip Jefferson, one of the governors of the Fed, must speak during the day, while Michael Barr, the vice-president of the Fed, will be heard by the Senate on “banking supervision” on Tuesday.

In the meantime, calm has returned to the markets and all the major sectors of the European rating are in the green, the banking compartment posting the best performance of the Stoxx 600 with a gain of 1.31%.

Deutsche Bank, which lost 8.5% on Friday, resumed 3.24% on Monday, while UBS rose by 1.62% and Credit Suisse by 2.69%. In Paris, Societe Generale and BNP Paribas advance respectively by 2.24% and 2.89%.

In the other compartments, Novartis jumped 5.61%, the laboratory having declared that Kisqali, its treatment against breast cancer, reduced the risk of recurrence in women diagnosed at an early stage of the disease.

(Written by Claude Chendjou, edited by Blandine Hénault)

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