European stocks extend recovery as banking fears ebb

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Investors hopeful after buyout deal agreed for SIlicon Valley Bank

First Citizens BancShares has made an agreement with US banking regulators to acquire Silicon Valley Bank.European stocks rose on Tuesday as investors grew hopeful that the banking crisis will be contained after a buyout deal for the failed Silicon Valley Bank.

The continentwide STOXX 600 index rose 0.7 per cent by 0708 GMT, extending gains for a second session after last week’s rout in banking shares caused by the collapse of Credit Suisse and two mid-sized US lenders. European banks rose 1.6 per cent, adding to Monday’s 1.4 per cent gain. Swiss bank UBS climbed 2.4 per cent after CEO Ralph Hamers said the bank sees its government-orchestrated takeover of Credit Suisse as a growth opportunity, in an internal memo seen by Reuters. Credit Suisse shares rose 3.1 per cent.READ MORE

Telecom Italia added 2.7 per cent after Bloomberg News reported that Italy's state-backed lender is working on a higher bid for the company's landline network. Zalando climbed 2.7 per cent after HSBC upgraded Europe’s biggest online fashion retailer to “buy” from “hold”. – Reuters

 

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