(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)
March 13 (Reuters) - European stocks fell on Monday as
bank stocks continued to tumble in the region even as
authorities stepped in to cap the fallout from the sudden
collapse of Silicon Valley Bank (SVB).
The pan-European STOXX 600 index fell 0.6% by 0812
GMT, having closed at a more-than-five-week low on Friday.
However, Wall Street futures rallied after the Federal
Reserve and U.S. Treasury announced a range of measures to
stabilise the banking system and said depositors at SVB would
have access to their deposits on Monday. European banking stocks dropped 1.1%, after their
worst two-day selloff in more than five months, on worries about
the resilience of the sector's balance sheet in the face of
SVB's collapse and the interest rate outlook.
Investors now see a nearly 90% chance that the Fed will hike
interest rates by 25 basis points (bps) next week, a drastic
change from the 50-bps hike they had priced in previously
following strong economic data.
Goldman Sachs said on Sunday it expects no rate hike in
light of the recent stress in the financial sector.
Meanwhile, the European Central Bank is set to hike rates by
50 bps later this week. HSBC slipped 0.1% after the British bank said it is
acquiring the UK subsidiary of SVB for 1 pound, rescuing a key
lender for technology start-ups in Britain.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Savio
D'Souza)
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