Global stocks buoyant but mood remains skittish

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Investors comforted by signs of improved stability in the banking sector and news of Alibaba’s restructuring

London — Global shares rose on Wednesday as investors took heart from a greater degree of stability in the banking sector, though the sense of optimism wasn’t robust enough to severely knock safe-haven assets such as bonds or gold.The sale of assets in Silicon Valley Bank , the regional US lender that collapsed earlier this month, has helped support risk appetite.

“Sentiment is skittish at the moment and market will be prone to swings,” said Kallum Pickering, senior economist at Berenberg. “From a macroeconomic perspective, we should be relaxed that major banks, on both sides of the Atlantic, are well capitalised, have lots of deposits, and regulators and central banks seem absolutely committed to preventing any significant systemic event,” Pickering said.

“Investors have not completely lost their anxiety ... and hints of a big regulatory overhaul are likely to weigh on the [banking] sector until details emerge,” said Robert Carnell, regional head of research, Asia Pacific at ING. Worries about inflation have prompted investors to reassess their expectations for monetary policy from a number of top central banks, including the European Central Bank and the Federal Reserve.

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