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STOXX 600 rises 0.8%
March 17 (Reuters) - European shares extended recovery for a second straight session on Friday as supportive measures for banks in the United States and Europe calmed fears about an imminent collapse, but the index was set to post a second straight weekly drop. The pan-European STOXX 600 rose 0.8% by 0805 GMT, as banks gained 1.3%, after a $30 billion lifeline by large U.S. banks for embattled lender First Republic Bank . The package came less than a day after Swiss bank Credit Suisse clinched an emergency central bank loan of up to $54 billion to shore up its liquidity.
Credit Suisse rose 1.8% in early trade, after jumping 19% on Thursday. Lender-heavy indexes of Spain and Italy advanced 0.7% and 1.0%, respectively, but were still on track for sharp weekly losses. Overall, the STOXX 600 index ended Thursday 1.2% higher after some back and forth as the lifeline to Credit Suisse offset concerns around the European Central Bank's big 50-basis point (bp) interest rate hike. The ECB's decision reflects the central bank's priority to fight inflation and also signals strong confidence in the solidity of European banks, said French ECB policymaker Francois Villeroy de Galhau. Goldman Sachs lowered its estimate for an interest rate hike by the ECB in May to 25 bps. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich)
@BansariKamdar;))