EUROPEAN FUTURES EDGE UP AFTER SVB UK DEAL (0734 GMT)
European futures are signalling small gains at the open, having reversed course from heavy losses overnight after U.S. authorities launched emergency measures to limit the fallout from the collapse of Silicon Valley Bank (SVB). Meanwhile HSBC said on Monday it had stepped in to buy the UK arm of SVB. Eurostoxx futures and Germany's DAX futures are 0.2% higher while FTSE futures are more or less flat. U.S CME e-mini S&P 500 futures are up 1.5%. On Sunday, the Federal Reserve unveiled a new "Bank Term Funding Program (BTFP)", program as fears ramped up of broader financial market instability.
Global rate hike expectations fell in the aftermath, with a 50bps rate hike from the Fed next week now no longer considered a certainty.
Eyes will be on European banks at the open, with Deutsche Bank's shares already up 4.3% higher in early Frankfurt-trading while Commerzbank shares were up 3.8%.
European banks shed 3.8% on Friday. The Frankfurt-listed shares of several U.S. banks including Bank of America , Goldman Sachs and Citigroup were also around 2.4%-3.2% higher.
And don't forget about the rest of the week. Markets can look forward to U.S. inflation data on Tuesday, a new UK budget on Wednesday and a European Central Bank meeting on Thursday.
(Lucy Raitano)
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