Regulators seized First Republic Bank and struck a deal to sell the bulk of its operations to JP Morgan Chase & Co., heading off a chaotic collapse that threatened to reignite the recent banking crisis. JP Morgan said it will assume all of First Republic’s $92 billion in deposits - insured and uninsured. It is also buying most of the bank’s assets, including about $173 billion in loans and $30 billion in securities. As part of the agreement, the Federal Deposit Insurance Corp. will share losses with JP Morgan on First Republic’s loans. The agency estimated that its insurance fund would take a hit of $13 billion in the deal. JP Morgan also said it would receive $50 billion in financing from the FDIC. San Francisco-based First Republic, the second-largest bank to fail in U.S. history, lost $100 billion in deposits in a March run following the collapse of fellow Bay Area lender Silicon Valley Bank. It limped along for weeks after a group of America’s biggest banks came to its rescue with a $30 billion deposit. Those deposits will be repaid after the deal closes, JP Morgan said. Three of the four largest-ever U.S. bank failures have occurred in the past two months.

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The Switzerland stock market ended on a firm note on Friday after staying positive right through the day's session as investors shrugged off concerns about growth and focused on earnings. The benchmark SMI ended with a gain of 75.25 points or 0.66% at 11,437.14, after moving in a tight range between 11,378.82 and 11,444.00. Logitech rallied 3.1%. Partners Group, Geberit, Sika and Alcon gained 1.8 to 2.5%. Zurich Insurance Group and Roche Holding both surged about 1.5%, while Swiss Re, Sonova and Credit Suisse ended nearly 1% up. Richemont drifted down 1.5%, while ABB, Novartis and Swisscom posted modest losses. In the Mid Price Index, Bachem Holding, Ems Chemie Holding, AMS and Adecco gained 2.3 to 2.75%. Clariant, VAT Group, Barry Callebaut, Lindt & Spruengli, Straumann Holding and Temenos Group also ended notably higher. In economic news, retail sales in Switzerland dropped 1.9% year-on-year in March 2023, slipping further from a revised 0.5% fall in the previous month, data from Swiss Federal Statistical Office showed. On a monthly basis, retail trade went down 0.1%, following a downwardly revised 0.5% growth in February. The Swiss Economic Institute (KOF) said Switzerland's KOF economic barometer fell to 96.4 in April of 2023, from an upwardly revised 99.2 in the previous month.

European stocks closed higher on Friday, recovering well after a mid morning setback, as some upbeat corporate earnings helped offset concerns about economic slowdown and interest rates. The pan European Stoxx 600 climbed 0.56%. The U.K.'s FTSE 100 gained 0.5%, Germany's DAX surged 0.77% and France's CAC 40 edged up 0.1%, while Switzerland's SMI ended 0.66% up. Among other markets in Europe, Belgium, Denmark, Ireland, Netherlands and Norway closed higher. Czech Republic, Greece, Iceland, Poland, Portugal, Russia, Spain and Turkiye ended weak, while Austria, Finland and Sweden settled flat. In the UK market, Prudential, Pearson, Smurfit Kappa Group, Segro, Land Securities Group, British Land Co., Beazley, Persimmon, Rentokil, IAG, Airtel Africa, Shell, BP and Smith & Nephew gained 2 to 4.3%. Natwest Group tumbled nearly 4% amid disappointment over the outlook for the year. Diageo drifted down 2.5%, while Antofagasta, Ocado Group, Weir Group, Barclays, Fresnillo, Lloyds Banking Group and British American Tobacco lost 1 to 2%. In Paris, Saint Gobain gained 2.6% after reporting higher-than-expected first-quarter revenue. Dassault Systemes surged 2.5%. Alstom, TotalEnergies, Michelin, Renault, Stellantis, Vivendi, Legrand, Airbus Group, Bouygues, Capgemini and Unibail Rodamco advanced 1 to 2%. Engie ended nearly 6% down. Pernod Ricard lost 2.6% and Sanofi ended 1.79% down. In the German market, Covestro surged 8.5% after announcing it would resume current share buyback program.

Major stock indexes hardly budged Monday after regulators seized ailing lender First Republic Bank and agreed to sell the bulk of its operations to JP Morgan Chase. The sale pre-empts a chaotic collapse of the San Francisco-based lender that investors feared could reignite March's banking turmoil and instead puts the spotlight back on the Federal Reserve's interest-rate decision on Wednesday. The S&P 500 shaved off 0.04%. The Dow Jones Industrial Average shed 0.1%, or about 46 points. The Nasdaq Composite also slipped 0.1%. JP Morgan shares rose 2.1% Monday on the prospect of adding many of First Republic's wealthy customers. First Republic's stock plunged 34% premarket before being halted. Regional banks were among the day's worst performers. PNC Financial, which had bid for First Republic over the weekend, declined 6.3%. U.S. Bancorp fell 3.9%, and KeyCorp dropped 4.8%. Although the market reaction to the second-largest bank failure in U.S. history was muted, First Republic's collapse will have significant implications for small and regional lenders, said Katie Nixon, chief investment office for wealth management at Northern Trust. Corporate earnings have lately suggested that U.S. consumers remain in good shape and eager to spend, complicating the central bank's efforts to tame inflation by slowing consumption. Norwegian Cruise Line Holdings said Monday that its first-quarter revenue tripled, bookings rose to a record level and that it expects the current period to be its first profitable quarter since the pandemic.

The stock markets in East Asia are mostly showing slight gains on Tuesday. On the Japanese stock exchange, the Nikkei index rose by a further 0.3 per cent to 29,198 points after the previous day's gains

The reading strengthened traders' resolve that a quarter-point rate increase is on tap for Wednesday's Federal Reserve meeting and reduced the odds of rate cuts later this year. The yield on the 10-year note increased to 3.573%, up from 3.451% on Friday

Credit Suisse raises the Hellofresh target to EUR 23 (21) / Neutral – Trader

Deutsche Bank raises the London Stock Exchange target to 8,200 (8,000) p – Hold

Bank of America lowers the DWS target to EUR 34 (35)/Neutral – Trader

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