European stock markets rose on Tuesday as investors hoped the banking crisis would be contained following the deal to buy the ailing Silicon Valley bank.
The STOXX 600 index was up 0.7% as of 0708 GMT, extending gains for a second straight session after bank stocks tumbled last week following the collapse of Credit Suisse and two mid-sized US banks.
The European banks up 1.6%, contributing to Monday’s 1.4% gain. Swiss bank UBS rose 2.4% after its chief executive, Ralph Hamers, said in an internal Reuters memo that the bank viewed the government-orchestrated takeover of Credit Suisse as a growth opportunity. Credit Suisse shares rose 3.1%.
The same is not the case with US banks, he explains. Pablo García, Director of Divacon’s Alphavalue. Big names like JPMorgan Chase, Morgan Stanley or Citigroup remain negative in the cumulative annual figures, while European names like UniCredit, Banco Santander, Credit Agricole or even UBS, the buyer of Credit Suisse, are positive.
This is how it has moved on the STOXX 600 over the past year:
According to the expert, it must be taken into account that inflation is far from under control as it remains at very high levels, but he also points out that possibly the credit crunch that financial institutions will carry out can help central banks’ task.
In any case, when assembling our portfolios, we have to Be careful with banksto see how this crisis that started in the US and continued in Europe unfolds, you have to be far away from the real estate industry, which is already the worst this year, and you can Bet on the technology sector. For the expert, names like Microsoft or Apple can be a good option; “They are shedding staff, adjusting to the economy, having net cash and a solid business model that hasn’t been questioned.