Asian markets experienced a rebound overnight from the previous day’s downturn, as concerns about another financial crisis eased and lenders were lifted.
The panic that had characterized trading over the past 11 days appeared to have faded after leading economies’ authorities pledged support for depositors and troubled banks following the collapse of Silicon Valley Bank and Signature Bank in the United States.
Nevertheless, the takeover of troubled Credit Suisse by UBS for £2.7bn raised concerns about what could be next on the chopping block, and analysts warned that it was too early to declare that the crisis was over.
The objective of saving Credit Suisse was to prevent a more widespread crisis since it is one of the 30 global banks regarded as “too big to fail.” All three primary indexes on Wall Street concluded in the green, with the Dow up over one per cent, while European markets were also comfortably higher, boosted by promises of support from the Fed and other central banks, as well as the rescue of Credit Suisse.
However, despite a coalition of US lenders pledging to inject $30bn into it, embattled First Republic Bank fell by nearly 50%.
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