Grocery firm Ocado ( OCDO.L) climbed 1% and Barclays ( BARC.L) gained 3.11% after falling 9% on Wednesday. FTSE 100īack in London, pest control firm Rentokil ( RTO.L) was the top riser, up 10.26%, after reporting a jump in annual profits. The Shanghai Composite ( 000001.SS) also lost ground, slipping 1.12% to 3,226 points. In Asia, Tokyo’s Nikkei 225 ( ^N225) lost 0.80% to close at 27,010, while the Hang Seng ( ^HSI) in Hong Kong tumbled 1.64% to 19,219. A full takeover is also a possibility, according to the Journal. The deal could involve capital infusion to bolster the troubled lender after the collapse of Silicon Valley Bank last week, which triggered fears of a contagion, the WSJ reported. The Wall Street Journal said that several banks including JPMorgan Chase & Co and Morgan Stanley are in talks with First Republic Bank for a potential deal. Shares in regional bank First Republic (FRC) were down 18%, despite reports of a potential rescue deal. In US economic data, the latest weekly report on initial jobless claims showed a drop in first-time filings for unemployment insurance to 192,000 down from 212,000 the prior week and suggesting continued strength in the US labour market. In Germany, the DAX ( ^GDAXI) rose 1.68% to 14,985. The FTSE 100 ( ^FTSE) rose 0.94% to close at 7,413 points, while the CAC 40 ( ^FCHI) in Paris jumped 2.21% to 7,038 points. Problems in the banking sector surfaced in the US last week with the shock collapse of Silicon Valley Bank ( SIVB), the country's 16th-largest lender, followed two days later by the failure of New York's Signature Bank ( SBNY). Credit Suisse is one of 30 banks globally deemed too big to fail, forcing it to set aside more cash to weather a crisis. The decision comes after troubled Credit Suisse said it will borrow up to 50bn Swiss francs (£44.5bn/$53.7bn) from the country's central bank to shore up its finances. Read more: Taxpayers to take £500 to £1,000 hit as UK faces worst two years on record for household incomes "The euro area banking sector is resilient, with strong capital and liquidity positions." "The Governing Council is monitoring current market tensions closely and stands ready to respond as necessary to preserve price stability and financial stability in the euro area," the statement added. "Therefore, the Governing Council today decided to increase the three key ECB interest rates by 50 basis points, in line with its determination to ensure the timely return of inflation to the 2% medium-term target." "Inflation is projected to remain too high for too long," the ECB said in its statement. The ECB raised rates by half a percentage point to 3%, defying calls to hold rates amid the turmoil in the banking sector. The FTSE 100 and European stocks bounced back this Thursday after heavy losses in recent days after the Swiss central bank offered support to embattled lender Credit Suisse ( CS) and the European Central Bank (ECB) hiked interest rates. FTSE traders were not perturbed by the ECB's surprise decision to hike interest rates to 3%.
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