April 2023 Market Update – Stock markets bounce back after banking turmoil

Stocks rebounded after the US government said it would protect people’s deposits following a potential crisis in the banking industry.

Global stock markets rebounded after the US government gave fresh assurances over the stability of the banking sector after a string of bank failures. The collapse of Silicon Valley Bank (SVB) sent global markets reeling, with shares in US and European banks tumbling. The US government stepped in to shore up the bank and assured all depositors that they would have access to their funds.

Some of the biggest banks in the world saw billions wiped from their market value in what was the largest bank failure since the 2008 financial crisis. HSBC bought the UK arm of SVB, bringing relief to thousands of UK tech companies and startups worried about not being able to access their money or meet costs. US regional bank Signature Bank also collapsed, while a crisis at Credit Suisse was averted after it was taken over by UBS.