Closing summary
Time to close up. UK stocks are up 1% on the FTSE 100 while Europe’s main indices have advanced between 1.2% and 1.4% as fears of a global banking crisis ebbed – the third day of gains. Wall Street is also higher, with the Dow Jones gaining more than 200 points.
Eurozone bond yields have stabilised after the turmoil of recent weeks.
Credit Suisse has violated a 2014 plea agreement with the US government and concealed more than $700m from tax authorities – and the Swiss bank continues to help ultra-wealthy Americans dodge taxes, the US Senate Finance Committee has concluded after a two-year investigation.
The news came on the day the Swiss bank UBS announced the surprise return of Sergio Ermotti to oversee the takeover of its rival Credit Suisse, amid global concerns over the stability of the banking industry.
Jeremy Hunt has pledged to find additional money to help fund public sector pay deals after admitting that Britain’s high level of inflation has made it impossible for Whitehall departments to end strikes without Treasury support.
The Bank of England has called for tougher rules governing pension schemes and major lenders outside the banking mainstream as it seeks to restore confidence in the wider financial system.
Mortgage approvals in the UK rose for the first time in six months in February amid signs that the collapse in demand for property seen last autumn might be bottoming out.
Next said it expected to raise prices more slowly in the coming year in a sign of easing inflation, as the clothing and homeware retailer reported record annual profits of £870m.
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Thank you for reading. We’ll be back tomorrow. Good-bye! – JK
Eurozone bond yields flat as bank worries fade
Yields on eurozone government bond yields are stable today after two days of increases. Yields, which move inversely to prices, tumbled earlier this month after Silicon Valley Bank collapsed and UBS was forced to ride to the rescue of troubled Swiss lender Credit Suisse.
This prompted investors to pile into the safety of government bonds, as traders bet that central banks would be unable to raise interest rates much further amid the turmoil.
However, yields picked up again in recent days as investors’ confidence returned and favoured stocks over bonds. Germany’s 10-year bond yield, the benchmark for the eurozone, rose 3 basis points to 2.31%.
