Interest-sensitive real estate and technology stocks boosted the benchmark European equities index on Tuesday after three days of selling following the collapse of Silicon Valley Bank, which sent shivers down the spines of the global banking sector.
The pan-European index STOXX 600 It rose 0.1 percent at 0813 GMT, after plunging 2.4 percent a day earlier in its worst sales streak of the year.
Real estate and technology stocks rose 1.1% and 0.4%, respectively, thanks to purchases by investors in sectors that usually benefit from lower interest rates.
European bond yields continued to fall, at a time when investors are betting on less monetary tightening by the European Central Bank (ECB). At the ECB’s monetary policy meeting on Thursday, traders saw a 25 basis point hike as most likely, up from 50 basis points last week.
The European bank index fell 0.6 percent after posting its biggest percentage loss in more than a year on Monday.
Credit Suisse (SIX) shares:CSGNThey fell 1.3% after the troubled Swiss bank said in its 2022 annual report that “customer outflows stabilized at much lower levels, but have yet to be reversed.” The stock hit a record low on Monday, dragged down by the banking sector sell-off.
HSBC fell 1.8 percent on its fourth straight day of losses. The British bank bought the British arm of Silicon Valley Bank on Monday, bailing out a key bank for tech startups in Britain.