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European stock markets and banks rebound at the open

2023-03-27T09:00:23.639Z


The result had been mixed last week, with a start in the green but an end in the red, following the fall of the action Deutsche Bank.


The Paris Stock Exchange rose 0.72% on Monday and offset a very small part of Friday's losses caused by fears about the financial strength of the first German bank Deutsche Bank, an announcement of takeover of SVB supporting the morale of investors.

The star CAC 40 index rose 52 points to 7,065.46 points around 10:15 a.m.

Friday, the main index of the Parisian place had fallen by 1.74% after returning in session below the 7,000 point mark.

However, the CAC 40 ended the week up 1.30% and has gained more than 8% since the start of the year.

After the bankruptcy of American regional banks, the takeover of Credit Suisse by UBS to restore confidence in the Swiss bank, it was on Deutsche Bank that a wind of panic blew on Friday, after a sharp increase in the cost of insurance against the risk of default (CDS) of the first German bank.

But for Andreas Lipkow, an independent analyst, “

the so-called banking crisis has so far only turned out to be a storm in a financial teacup

”.

Monday at the opening, the actions of European banks rebounded sharply before calming their momentum.

Read alsoHow the Swiss financial center fell from its pedestal

The banking sector follows the same evolution

Around 10:10 a.m., the banking sector of the broader Stoxx Europe 600 index took 0.93%.

The shares of BNP Paribas (+0.91% to 50.97 euros), Société Générale (+0.43% to 19.99 euros) and Crédit Agricole (+0.53% to 9.99 euros) were mixed.

It is difficult to see how in the very short term the current fears will dissipate, even if, objectively, it is difficult to see a trivial link between the failures of the few banks in the United States and of Credit Suisse in Europe and the extent of the anxiety that has manifested itself in the market

,” said Sebastian Paris Horvitz, director of research at Banque Postale AM.

The acquisition of "

all deposits and loans

" of Silicon Valley Bank (SVB), which went bankrupt in early March, by the American bank First Citizens, seemed to be well received by investors.

The resolution operation seems to have been carried out quickly and suggests that the banking system is more resilient than current fears

,” adds Sebastian Paris Horvitz.

Source: lefigaro

All news articles on 2023-03-27

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