Silicon Valley Bank’s headquarters in California. The bank's troubles have caused turbulence in the global stock markets. Photograph: Jim Wilson/The New York TimesRate-sensitive property and technology stocks lifted the wider European benchmark on Tuesday after a three-day selloff in the wake of Silicon Valley Bank’s collapse that sent chills through the banking sector globally.
The pan-European Stoxx 600 index rose 0.1 per cent by 0813 GMT after plunging 2.4 per cent a day earlier in its worst sell-off of the year. Property and technology stocks climbed 1.1 per cent and 0.4 per cent, respectively, as investors bought into the sectors that tend to benefit from lower interest rates.
European bond yields fell further as investors bet on reduced policy tightening from the European Central Bank . Traders are now pricing in a 25 basis-point hike as the most likely outcome at the ECB's policy meeting on Thursday, having priced in a 50 basis-point hike with near certainty last week.