Investing.com – European stock markets traded sharply higher Friday, with sentiment boosted by moves in both Europe and the United States to support under-pressure lenders, likely preventing a full-blown banking crisis.
A number of large U.S. banks injected $30 billion in deposits into First Republic Bank (NYSE:FRC) on Thursday, moving to support the lender which had been caught up in the backwash triggered by the failure of two other regional U.S. lenders last week.
This followed the announcement late Wednesday that troubled European bank Credit Suisse (SIX:CSGN) had received a financial lifeline from the Swiss National Bank.
The European Central Bank raised interest rates by 50 basis points on Thursday, suggesting the policymakers remain confident that the region’s banking sector will be able to cope with more monetary tightening even in these troubled times.
Final CPI data for the Eurozone are due later in the session in a thin calendar for economic data releases, and is expected to show that inflation grew 0.8% on the month in February, up 8.5% on the year.
In corporate news, Sanofi (EPA:SASY) stock rose 0.4% after the drugmaker said it would slash U.S. list prices for its most-prescribed insulin product, Lantus, next year following similar moves by U.S. rivals.
Casino Guichard Perrachon (EPA:CASP) stock rose 1.8% after the French supermarket group unveiled a fresh stake sale in Brazilian cash-and-carry chain Assai as part of its ongoing plan to address its sizeable debt pile.
Oil prices climbed higher Friday on hope of a response from OPEC and its allies to the week’s sharp selloff on concerns the banking crisis would hurt global economic activity.
Reports indicated that energy ministers from Saudi Arabia and Russia met in Riyadh on Thursday to discuss potential action to support the crude market, which is on course for its biggest weekly loss this year.
The advisory committee of the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC+, will meet on April 3.
Both benchmarks hit their lowest levels in more than a year this week and are set to post weekly falls of around 10%, their biggest since December.