Stocks creep toward quarterly gain as bank fears subside

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Asia’s stock markets held recent gains as fears of a banking crisis receded and investors weighed whether a break-up of Chinese conglomerate Alibaba signals Beijing’s regulatory storm aimed at tech companies might finally be clearing. | Reuters

The U.S. dollar was firm, particularly against the safe-haven Japanese yen as investors wound back some of the positions built up in the last couple of weeks.As the dust settles on a wild and volatile ride after Silicon Valley Bank’s collapse unleashed fears of a broader banking crisis, the winners appear to be bonds and large tech companies that tend to benefit when interest rates fall.

The rates-sensitive Nasdaq is up nearly 14 percent this year and heading for its best quarter in more than two years. “ in periods of true fear, investors run to the U.S. dollar; in March, the euro strengthened against the U.S. dollar. And there are no signs of funding pressures in U.S. money markets or cross-currency swaps,” they said.

“The swift announcement of business restructuring yesterday effectively served as the ultimate stamp of reassurance that regulatory tightening has ended.”

 

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Stocks gain, dollar slides as banking fear easesGlobal stocks rose and the dollar softened as a deal backed by the U.S. regulator for First Citizens BancShares to buy failed Silicon Valley Bank soothed wider worries about problems in the sector. | Reuters
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