Global markets: US, European stocks rebound as inflation data offsets banking crisis fears
Shares in the US and Europe climbed back on Tuesday on softening US inflation data as it offset fears over banking crisis.
Annual inflation eased to 6.0% in February, US consumer price data showed on Tuesday.
The shares of US banks which were especially hard hit on Monday recovered from their lows.
All three major US indices rose. The S&P 500 rose 1.7%. The Dow Jones Industrial Average surged 1.1%. The Nasdaq composite gained 2.1%.
After the closure of Silicon Valley Bank and Signature Bank, investors believe that the US Federal Reserve will slow the pace of interest rate hikes at its meeting next week.
About $465 billion had been wiped off the market value of global financial stocks in just three days, Bloomberg News report said.
European stocks
European stocks gained on Tuesday on rebound in bank shares.
European STOXX 600 index rose 1.5%.
Germany’s DAX soared 1.8% at 15,232.83. France’s CAC 40 gained 1.9% at 7,141.57.
Britain’s FTSE 100: rose 1.2% at 7,637.11.
Investors are awaiting the European Central Bank’s decision on interest rate hike on Thursday.
Asian stocks
Asian stocks fell on Tuesday on worries over US banking crisis.
Hong Kong’s Hang Seng fell 2.3%. The Shanghai Composite dropped 0. 0.7%.
Japan’s Nikkei 225 declined 2.2%.
Bullion
Gold fell after rising in the three previous sessions as investors turned to safe haven assets.
- Gold futures fell 0.3% to $1,910.90 an ounce.
Bonds
The two-year Treasury yield rose to 4.2% after the inflation data.
Oil prices fell on Tuesday on slowing demand.
Crude oil futures fell over 4% to a three-month low.
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