Banks boost European stocks, UBS rises after appointing Ermotti as chief executive

Credit Suisse gained 4%, while the financial services sector and banking indexes rose between 1.8% and 1.9% (Image: REUTERS/Denis Balibouse)

To the european stocks rose this Wednesday supported by gains in the shares of banksincluding the UBS after the appointment of a new chief executive, while chipmaker Infineon’s strong outlook helped sentiment.

The pan-European STOXX 600 index closed up 1.30% at 450.21 points.

UBS Group AG gained 3.7% after the Swiss bank announced that Sergio Ermotti will take the helm to lead the acquisition of Credit Suisse.

O Credit Suisse advanced 4%, while the financial services sector and banking indexes rose between 1.8% and 1.9%.

“I can see why the market has stabilized and it’s true that there are some slightly comforting factors. (Bets on the) Fed have been repriced down quite aggressively in recent weeks and investor positioning is very defensive,” said Vincent Chaigneau, head of research at Generali Investments.

“But what will dominate is the cyclical deterioration and aftershocks from banking stress. We are very likely to see a credit crunch with much tighter bank lending standards.”

Germany’s Infineon gained 6.9% after the chipmaker raised its fiscal second quarter and full-year 2023 outlook.

The technology index rose 2.7%, including STMicroelectronics and AMSS, which rose despite a bearish forecast from US chipmaker Micron Technology.

In London, the Financial Times index advanced 1.07%, to 7,564.27 points.

In Frankfurt, the DAX index rose 1.23% to 15,328.78 points.

In Paris, the CAC-40 index gained 1.39%, at 7,186.99 points.

In Milan, the Ftse/Mib index appreciated by 1.56%, at 26,739.01 points.

In Madrid, the Ibex-35 index registered an increase of 1.41%, to 9,070.70 points.

In Lisbon, the PSI20 index appreciated by 1.12%, to 5,901.15 points.

Source: Moneytimes

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