According to a Reuters article, the deal by First Citizens BancShares to acquire the bankrupt Silicon Valley Bank calmed broader concerns about issues in the industry, which led to an increase in global stock prices and U.S. government yields on Tuesday.
MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3% by early morning Hong Kong time. U.S. stock futures, the S&P 500 e-minis, were up 0.21%, quoted the Reuters report.
Australian shares jumped more than 1%, as lithium and commodity stocks rallied sharply after battery metals explorer Liontown Resources (LTR.AX) rejected a $3.7 billion buyout bid from Albemarle Corp.
Top U.S. banking regulators said on Monday that they planned to tell Congress that the overall financial system remains on solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses, added the Reuters report.
The concerns, however, haven’t completely gone away as Federal Reserve Governor Philip Jefferson said on Monday that stress among small banks could hit small businesses hardest. The dollar slid to 130.76 yen from the late New York high of 131.75 and 131.54 early Asia.
“This round of uncertainty that we’re seeing, it will likely continue for some more time,” said Manishi Raychaudhuri, Asia-Pacific head of equity research at BNP Paribas. “We haven’t seen the end of it.” He expects continued volatility for global markets going forward for at least one or two quarters, added the Reuters report.