Rising crude prices supported BP and Shell shares. Brent oil was quoted at USD75.30 a barrel early Friday in London, rising from USD74.21 late on Thursday. Oil prices, which also suffered this week, were on the up. It had risen 19% on Thursday, reversing some of Wednesday's 24% share price slump. In early trade in Zurich on Friday, Credit Suisse added another 1.2%. " the concerns haven't gone away though, as while Credit Suisse saw its equity price increase, its bonds/ were generally flat to weaker." "Some optimism has returned to markets over the last 24 hours, with bank stocks stabilising on both sides of the Atlantic," analysts at Deutsche Bank commented. "European banks are not in the same situation as certain American banks for a very simple reason which is that they are not subjected to the same rules," Francois Villeroy de Galhau, who is also a member of the European Central Bank's governing council, told BFM Business television. US Treasury Secretary Janet Yellen said the banking system remains sound despite market anxiety.Įurope's banking sector also received a vote of confidence.Įuropean banks are in "extremely solid" shape, and their situation is not similar to that of some US lenders, the French central bank chief said Friday amid fears of a crisis in the sector. JPMorgan, Bank of America, Citigroup and Wells Fargo are among those providing the funds.įirst Republic shares, already supported by news that the Swiss National Bank had stepped in to offer liquidity to embattled Swiss lender, Credit Suisse, added 10% in New York on Thursday. In addition, some of the largest US banks have banded together to deposit USD30 billion into First Republic in an attempt to bolster its finances and contain the fallout from the collapse of two major lenders in the past week. The Fed had unveiled the scheme alongside the Treasury and the Federal Deposit Insurance Corp on Sunday night, as authorities looked to prevent other banks from running into the liquidity issues that ultimately doomed California's SVB. The total outstanding amount of all advances under the Bank Term Funding Program reached USD11.9 billion by Wednesday, the US central bank announced in a statement on Thursday. The Federal Reserve has lent US banks nearly USD12 billion under a new one-year lending programme unveiled Sunday, as authorities moved to ease stress on the financial system after Silicon Valley Bank's collapse. Against the yen, the dollar was trading at JPY133.70, up against JPY133.09. The euro stood at USD1.0661, higher against USD1.0619. The pound was quoted at USD1.2152 early Friday, up from USD1.2110 late Thursday. In New York on Thursday, the Dow Jones Industrial Average surged by 1.2%, the S&P 500 by 1.8%, and the Nasdaq Composite by 2.5%. In China, the Shanghai Composite rose 0.7%, while the Hang Seng in Hong Kong added 1.6%. The Nikkei 225 in Tokyo rose 1.2% and the S&P/ASX 200 in Sydney added 0.5%. In mainland Europe, the CAC 40 in Paris was up 1.1%, while the DAX 40 in Frankfurt rose 0.9%. The Cboe Small Companies traded flat at 13,490.25. The FTSE 100 index opened 96.05 points, 1.3%, higher at 7,506.08 on Friday.
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