European indices pare early losses in up and down start to the day | Forexlive

Markets were jittery as European traders got to their desks today and that was reflected by sharp declines in risk trades early on. But as the headlines involving UBS’ takeover of Credit Suisse failed to get any worse, we are now seeing a turnaround in the overall mood – at least for now.

• Eurostoxx +0.1%
• Germany DAX +0.1%
• France CAC 40 +0.1%
• UK FTSE flat
• Spain IBEX -0.1%

Looking over to US pre-market, regional bank stocks have also recovered with Pacific Western up by 7% and Western Alliance up by a little over 1% at the moment. All eyes are still on First Republic though, whose shares are down 15% so far in pre-market.

At this stage, the longer we go without any major negative headlines, the better it should be for sentiment in the market. However, that will take some time and that is something that we might not get much of considering that the Fed policy decision is just looming around the corner on Wednesday.