Global shares inched higher after First Citizens BancShares (FCNCA.O) soothed fragile markets on Monday by saying that it would take the deposits and loans of failed Silicon Valley Bank (SIVB.O).
The deal offered markets some respite from several weeks of fresh banking collapses, rescues or emergency help from authorities.
The pan-European STOXX 600 (.STOXX) index was up 1.0% at 0942 GMT. The STOXX banks index (.SX7P) jumped 2.3% in early trading and was last up 0.8%.
Deutsche Bank shares (DBKGn.DE) rose about 4% after leading declines in the sector on Friday, when the cost of insuring the German bank's debt against the risk of default jumped.
S&P 500 futures traded up 0.3% and Nasdaq futures edged up 0.1% .
China saw profits for industrial firms shrink 22.9% in the first two months of this year, as its factories struggled to come out of the COVID-related disruptions. Chinese blue chips (.SSEC) slipped 0.4%, further weighed by geopolitical tensions.
Overall, the mood remained jittery due to concerns about banking stress and the impact on global growth.
"Banks have been under an immense amount of pressure. SVB and Credit Suisse put banks under a microscope on the impact that higher rates would have on certain credits," said Victor Balfour, investment strategist at Rothschild & Co. in London.
"But we don't think these specific names are symtomatic of the wider banking system," he said.
While inflation has not yet subsided, focus should shift in the coming months to corporate earnings expectations, which fell during the second half of last year, Balfour said.
