Relief for bank stocks as SVB finds a buyer
STORY: There were hopes for calm over global banks on Monday (March 27).
That after news of a buyer for Silicon Valley Bank.
Over the weekend, U.S. rival First Citizens BancShares bought all loans and deposits of the collapsed lender.
The deal sees SVB customers retain access to their accounts, with branches to open as normal on Monday (March 27).
Analysts broadly welcomed the news, after a week of mayhem for stocks.
Europe’s Stoxx index of banking shares is down almost a fifth this month.
But it opened the week with gains of around 1%.
Deutsche Bank also recovered some ground, after becoming the focus of concerns at the end of last week.
Its shares were up around 4% in early trade.
A week after its dramatic rescue by UBS, Credit Suisse also edged higher.
However, few think the banking troubles are over.
Banrion Capital Management founder Shana Sissel says that means sectors like aerospace and defense look like a refuge right now:
“Both of those sectors tend to do well in economic downturns because they can be heavily supported by government spending.”
On Monday morning in Europe, calm did reign.
But many think another storm may yet be coming.
