The pan-European STOXX 600 climbed 1.4%, extending gains after the index sharply recouped intraday losses and closed the session up nearly 1% on Monday.
Europe’s banking index jumped 3.1%, with shares in Swiss banks Credit Suisse slipping 0.6% and UBS gaining 3.6%. “With no new troubles in the banking sector for the past 24 hours, markets are hoping that’s a sign the crisis could have peaked,” said Russ Mould, investment director at AJ Bell. Meanwhile, European regulators tried to stop the AT1 market rout on Monday saying owners of this type of debt would only suffer losses after shareholders have been wiped out - unlike what happened at Credit Suisse.that some $17 billion worth of AT1 Credit Suisse bonds will be written down to zero as part of the rescue merger but shareholders, who usually rank below bondholders in terms of who gets paid when a company collapses, will receive $3.23 billion.