FILE PHOTO. Chart of the German DAX index on the Frankfurt Stock Exchange, Germany. March 7, 2023. REUTERS/Staff
March 14 (Reuters) – Interest rate-sensitive real estate and technology stocks propelled the benchmark European equities index on Tuesday, after three days of selling following the fall of Silicon Valley Bank, which sent chills across the board. the global banking sector.
The pan-European STOXX 600 index was up 0.1% at 0813 GMT, after plunging 2.4% a day earlier in its worst selling streak of the year.
Property and technology stocks rose 1.1% and 0.4% respectively, helped by investor buying in sectors that typically benefit from lower interest rates.
European bond yields continued to fall as investors bet on less tightening from the European Central Bank (ECB). At the ECB’s policy meeting on Thursday, traders see a 25 basis point rise as most likely, while last week they considered a 50 basis point rise almost certain.
The European banks index fell 0.6% after posting its biggest percentage loss in more than a year on Monday.
Credit Suisse shares fell 1.3% after the troubled Swiss bank said in its 2022 annual report that “customer outflows have stabilized at much lower levels, but have yet to reverse.” The stock hit a record low on Monday, dragged down by the banking sector sell-off.
HSBC fell 1.8% for its fourth consecutive day of losses. The British bank bought the British branch of Silicon Valley Bank on Monday, thus rescuing a key bank for technology “startups” (emerging companies) in the United Kingdom.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu; Editing in Spanish by Dario Fernandez)