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| Banks Regain Confidence After SVB Sale and First Citizens Acquisition |
Banks are starting to recover after the sale of Silicon Valley Bank and Credit Suisse earlier this month. First Republic Bank, PacWest Bancorp, and Western Alliance Bancorp saw increases in premarket trading, while UBS rose in trading in Zurich. Deutsche Bank, which suffered a sharp decline on Friday, also bounced back on Monday. The purchase of much of SVB by First Citizens Bancshares has helped settle investor nerves, who were worried about potential troubles spreading to other institutions, resulting in share sell-offs and deposit withdrawals. First Citizens made a dramatic jump, with shares climbing over 50% on Monday.
According to Susannah Streeter, the head of money and markets at Hargreaves Lansdown, a "relief ripple" has caused stocks to gain and hopes that the banking sector's volatility has eased. As banks continue their recovery, investors will likely keep a close eye on how the market will progress in the coming weeks.
