PARIS (Reuters) – The main European stock markets rose on Tuesday morning, the lull in the banking sector continuing with in particular the announcement of the support of the American authorities for the plan to buy back the assets of Silicon Valley Bank (SVB) by First Citizens BancShares.

In Paris, the CAC 40 took 0.54% to 7,116.72 points around 08:50 GMT. In London, the FTSE 100 advances by 0.44% and in Frankfurt, the Dax gains 0.42%.

The EuroStoxx 50 index rose by 0.46%, the FTSEurofirst 300 by 0.56% and the Stoxx 600 by 0.39%.

Futures on Wall Street also point to a rise of 0.41% for the Dow Jones and 0.10% for the Standard & Poor’s 500, while the Nasdaq is expected to fall 0.13% as the rally continues. bond yields.

The positive trend is still supported by the announcement of the takeover, with the support of the authorities, deposits and loans from Silicon Valley Bank, whose fall caused panic in the markets.

Two American officials, Michael Barr and Martin Gruenberg, respectively vice-president of the Fed and president of the FDIC, will also testify this Tuesday, before Congress, on the solidity of the financial system in the United States while possible additional aid to the banking sector are also under consideration.

“This does not mean that the storm has passed, only that the panic of the past few weeks is likely to subside and allow the re-emergence of a more rational market”, however warns Craig Erlam, market analyst at OANDA.

The volatility index in the United States and Europe is still moving at a high level, around 20 points.

On the stock market, the European compartment of banks (+0.82%) recorded one of the best performances of the Stoxx 600 and, on the other hand, real estate (-0.87%) showed the biggest drop.

In Paris, BNP Paribas gains 1.35%, while elsewhere in Europe, UBS advances by 1.23%, its managing director, Ralph Hamers, having also estimated that the takeover of Credit Suisse (+ 1.81%) was a growth opportunity, according to an internal memo seen by Reuters.

The oil and gas (+1.45%), basic resources (1.05%) and distribution (0.52%) compartments are also in demand. Zalando takes 1.13% after the increase in the recommendation of HSBC to “buy”, while ocado Group (+0.53%) and Marks & Spencer (+2.93%) are carried by the confirmation of forecasts for ‘Ocado Retail, their joint online supermarket chain.

Data published by the firm Kantar also shows that the rise in food prices in supermarkets in Britain reached a record rate of 17.5% over the four weeks to March 19.

In the economic statistics of the day, the public deficit in France was reduced to 4.7% of gross domestic product (GDP) in 2022 against 6.5% in 2021, while the public debt stood at 111.6 % of GDP, after 112.9% the previous year, according to INSEE data. The business climate in industry in France fell in March to 103 points compared to February.

In the United States, investors will learn at 2:00 p.m. GMT of the consumer confidence index, also expected to decline according to the Reuters consensus.

(Written by Claude Chendjou, edited by Kate Entringer)

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