Global stock markets breathe a sigh of relief after the support measures for the banking system.

The Asian markets showed relief today following the easing of tensions in Wall Street and European stock exchanges. The stocks rebounded with the measures taken to support Credit Suisse bank, American banks, and the reassurance message from the European Central Bank.

Yesterday, 11 major American banks pledged to assist First Republic Bank, the 14th largest bank in the United States by asset size, in recovering from a difficult situation due to the collapse of Silicon Valley Bank, Sigenture Bank, and Silvergate Bank. The bank’s clientele primarily consists of wealthy individuals.
This move helped reduce the collapse of the California bank from over 30 percent to around 10 percent, and it was welcomed by the American authorities, the Ministry of Economics, and the two authorized financial regulatory bodies.

Yesterday, the Federal Reserve stated that it has lent approximately $12 billion to banks since Sunday through a new program that allows these banks to avoid liquidity problems and respond to customer requests for withdrawing their deposits.
As for regular loans that have very short repayment terms, they experienced a significant increase within a week from approximately five billion dollars to 152 billion dollars.
The Federal Reserve lent $142.8 billion to the entities established by regulatory agencies to succeed Silicon Valley Bank and Signature Bank.

On Thursday evening, the major American indices rose after starting trading on a decline. The S&P 500 index ended up rising by 1.8%.
According to Maris Ogg, from the Tower Bridge Advisors financial services office, Wall Street hopes that the worst is now behind us. She added that if we remove assumptions of bankruptcy for First Republic and Credit Suisse, this will reassure people.
The speaker clarified that they do not believe the events of 2008 will be repeated because the problem is not coming from credit portfolios, but rather from the Federal Reserve’s increase of interest rates from zero to 4.50% over a period of nine months, according to sources in French.

This morning, the Asian stock markets recovered from the volatility of yesterday and the indicators rose at closing time.
In Shanghai, the composite index rose by 0.57% and the Shenzhen index increased by 0.71%.

On Thursday, European stock markets resumed their upward trend following a confidence-boosting message from the European Central Bank to the banking sector.
The bank based in Frankfurt raised its main interest rate by half a point, confirming its readiness to intervene as needed to maintain financial stability in the Eurozone.
This caused a sense of reassurance in the markets, causing Paris to close at 2.03%, Frankfurt at 1.57%, Milan at 1.38%, and London at 0.89%. Although these profits remained lower than their losses on the previous day.
However, the European Central Bank has cautioned about taking any further steps towards tightening its monetary policy and has abandoned its commitment to increase interest rates further in the upcoming months.

On Wednesday, another risk hotspot was brought under control with the Swiss National Bank pledging to provide up to 50 billion Swiss francs in liquidity to Credit Suisse Bank, which faced a precarious situation due to the spread of infection from American banks.
After its worst session in history on Wednesday, Credit Suisse bank recovered by recording a 19.15% increase without fully compensating for the losses of nearly 25% from the previous day. The stock value decreased by 19.88% in one week.

Later today, the Organization for Economic Cooperation and Development will release its predictions for global growth in the next two years.