Tuesday, 28 May 2024

European stocks up as investor concerns on banking sector ‎recede ‎


European stocks continued their recovery for the second consecutive session today, Friday, as the measures taken by the United States and Europe to support banks calmed fears of an imminent collapse, but the European index is on its way to record a decline for the second week in a row.

According to “Reuters”, the Stoxx 600 index rose 0.8 percent, by 0805 GMT, as the banking index increased 1.3 percent, after a $ 30 billion rescue plan presented by large US banks to the besieged First Republic Bank.

The package came less than a day after the Swiss bank Credit Suisse obtained an emergency loan from the central bank amounting to $ 54 billion to support liquidity.

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Credit Suisse shares rose 1.8 percent in early trade, after jumping 19 percent on Thursday.

Spanish and Italian indexes, which are dominated by banks, rose 0.7 percent and 1.0 percent, respectively, but they are on their way to incur large weekly losses.

Stoxx 600 index ended Thursday up 1.2 percent after volatile transactions, as the rescue package obtained by Credit Suisse allayed concerns about the European Central Bank raising interest rates by 50 basis points.