Premarket: World stocks firmer as investors bet banking crisis is behind them

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Investors hope turmoil in the banking sector has turned a corner as global stocks eye first-quarter gain of nearly 5 per cent

A steadier tone in global stocks continued on Thursday as investors hoped the banking sector had turned a corner on its recent turmoil to help markets end the quarter on a positive note.

“The next few days are going to be a key test of this stabilization with month end, and quarter end, coming up when you have a lot of funds doing a tidy up, then suddenly it’s where do we go from here?”Analysts said the relief rally on Wall Street on Wednesday raised spirits among investors, underpinned by firmer U.S. stock index futures on Thursday. The rates-sensitive Nasdaq is up nearly 14% this year and heading for its best quarter in more than two years.

“We think there is value is being long in duration, in buying those bonds issued by well rated issuers in the U.S. or in the euro area,” Thozet said.Asia’s stock markets held recent gains on Thursday as investors weighed whether a break-up of Chinese conglomerate Alibaba signals Beijing’s regulatory storm aimed at tech companies might finally be clearing.

 

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