European Shares Climb As Bank Worries Calm Down

European stocks advanced on Wednesday after top U.S. regulators expressed confidence that banks were solvent, blaming the recent collapse of Silicon Valley Bank on mismanagement, rather than systemic risks.

The pan European STOXX 600 was up 0.9 percent, at 448.44 after ending little changed with a negative bias on Tuesday.

The German DAX climbed 0.9 percent, France’s CAC 40 rallied 1.3 percent and the U.K.’s FTSE 100 was up 0.7 percent.

UBS Group AG jumped 1.8 percent after the Swiss lender rehired Sergio Ermotti as CEO to steer its massive takeover of neighbor Credit Suisse.

Oil & gas firm Shell rose 1.1 percent as oil prices rose for a third straight session on industry data showing a drop in U.S. crude inventories.

Next slumped 5.6 percent after the British clothing retailer kept its guidance for a 1.5 percent decline in full-price sales and profit of 795 million pounds for 2023-24.

Components and solutions provider Essentra added 1.2 percent after launching a share buyback.

Infineon Technologies shares soared 7.7 percent. The German chipmaker raised its outlook for both its financial second quarter and the whole of 2023.

Automaker Mercedes Benz fell nearly 2 percent on news that Kuwait’s sovereign wealth fund is planning to reduce its stake in the luxury carmaker.

Nordex gained 1.5 percent after it won contracts to supply and install 14 turbines from the Delta4000 series for three unnamed projects in Greece.

In economic releases, confidence among German consumers strengthened for the sixth consecutive month on improving income expectations, a closely watched survey by the market research group GfK revealed.

The consumer confidence index for April climbed to -29.5 from -30.6 in March, the Nuremberg-based GfK said.

Separate data showed U.K. mortgage approvals rose more than expected in February, despite higher borrowing costs.

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