Bank shares in Europe steadied, showing only modest losses. The STOXX Banks index comprising 21 leading European lenders dipped 0.8%, following steep plunges Monday that had some banks down more than 10% in intraday trading.
While risks outside the U.S. appear limited, the collapses of Silicon Valley Bank and Signature Bank have shaken confidence in the industry at a time when the Federal Reserve and other central banks are struggling to without snuffing out post-pandemic economic recoveries. At midday, France’s CAC 40 rose 0.9%, Germany’s DAX added 1.1% and Britain’s FTSE 100 inched up 0.3%.
Japanese officials have insisted that the impact on the country’s banks from troubles in the U.S. industry would likely be limited. But bank shares plunged.
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