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US and European stocks gain; Nasdaq adds 2.48%


Stock markets in the US and Europe gained on Thursday thanks to liquidity support to Credit Suisse by the Swiss central bank and a rate hike by the European Central Bank (ECB) that helped allay fears of a deepening banking crisis.

ECB policymakers on Thursday agreed to a rate hike of 50 basis points to curb skyrocketing inflation. The increase was the sixth in a row.

Investors welcomed the move by the ECB and are now awaiting the interest rate decision from the US Federal Reserve next week.

US stocks

US stocks rose on Thursday after reports that a consortium of banks was preparing to put billions of dollars into First Republic Bank.

A consortium of 11 US private banks, including Bank of America, Citigroup and JPMorgan Chase, said they would deposit $30 billion into First Republic Bank.

On Thursday, US stocks opened lower, but later closed higher.

The S&P 500 gained 1.76% to 3,960.28 points. The Dow Jones Industrial Average rose 1.17% to 32,246.55. The Nasdaq Composite added 2.48% to 11,717.28.

Shares of First Republic Bank are down about 70% this week on speculation that the bank could be next to fail after the collapse of Silicon Valley Bank and Signature Bank.

European stocks

The main reference index for European equities, STOXX 600, closed 1.3% higher on Credit Suisse securing a financial lifeline and the ECB rate hike.

The European banking sector index gained 1.2%. During the intraday session, it was down 1%.

The German DAX closed 1.6% higher. France CAC 40 advanced 2%. The UK FTSE 100 rose 0.9%.

The euro also rose against the US dollar.

After Wednesday’s defeat, shares of Credit Suisse rose more than 30% on Thursday after it secured a financial lifeline of up to $54 billion from the Swiss National Bank.

The Swiss bank share was more than 19% higher.

Asian stocks

Asian equities fell on Thursday, while the benchmark MSCI index of Asia-Pacific equities, excluding Japan, fell 1% to this year’s lowest level. Financials were among the hardest hit markets in Japan, Australia and Hong Kong.

Hong Kong’s Hang Seng index fell 1.7% to 19,203.91. The Shanghai Composite Index fell 1.1% to 3,226.89.

The S&P/ASX 200 index closed 1.5% lower at 6,965.50.

Japan’s Nikkei 225 fell 0.8% to 27,010.61.


The yield on benchmark 10-year Treasuries increased to 3.56%. The two-year return was 4.1175%, compared to a previous close of 3.975%.

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Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.