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7:01 a.m. ET, March 17, 2023

Global markets rise after US lenders bailed out First Republic Bank

From CNN’s Laura He and Anna Cooban

Markets in Europe and Asia rose on Friday after First Republic Bank was bailed out by a group of major US lenders, easing concerns about the current banking turmoil.

“Some optimism has returned to markets over the past 24 hours, with bank shares stabilizing on both sides of the Atlantic,” Deutsche Bank analysts said in a note on Friday.

European shares posted gains on Thursday as investors were reassured by news that Credit Suisse would tap a lifeline offered by the Swiss National Bank and lend up to 50 billion Swiss francs ($53.7 billion).

The rally in Europe carried over to Friday, although progress was modest. The benchmark Stoxx Europe 600 index rose 0.3% in early trade. Germany’s DAX (DAX) and France’s CAC 40 (CAC40) rose 0.4% and 0.07%, respectively.

Europe’s Stoxx Europe 600 Banks index, which tracks 42 major EU and UK banks, also opened higher before trading flat by mid-morning. The index had fallen 13% in the week to Thursday’s close.

London’s bank-heavy FTSE 100 (UKX) rose 0.6 per cent.

But shares of Credit Suisse ( AMJL ) fell as much as 5% in early trade, eating into gains made on Thursday, in a sign that investor confidence in the bank’s future has not been fully restored.

In Asia, Hong Kong’s Hang Seng (HSI) closed 1.64% higher, China’s Shanghai Composite rose 0.73%, Japan’s Nikkei (N225) rose 1.2% and South Korea’s Kospi rose 0.8% at the market close. The increases followed larger declines on Thursday.

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