US markets end higher, despite bank jitters
US stocks shook off gloomy banking news from across the Atlantic to end higher on Friday, as market sentiment improved after recent turmoil in the financial sector. "The market is just digesting a very volatile week," said 50 Park Investments CEO Adam Sarhan. "The lack of more bad news is considered good news," he added. The Dow Jones Industrial Average index closed 0.4 percent higher at 32,237, the S&P 500 ended up 0.6 percent at 3,970, and the Nasdaq rose 0.3 percent to 11,823. Shares in German lender Deutsche Bank ended 3.1 percent lower in New York and 8.5 percent lower in Europe. This fall followed news that the cost of insuring against its likelihood of default spiked to a four-year high amid concerns about the health of some European banks. US regional bank stocks including KeyCorp and PacWest Bancorp saw modest gains, although the embattled First Republic Bank ended the day down another 1.4 percent. The VIX index, which is often used to gauge the level of market volatility, ended the day down around three percent, suggesting a decline in some perception of the risks facing financial markets. On Friday, Treasury Secretary Janet Yellen chaired a meeting of financial regulators as well, as fears of a widening banking sector crisis continued. The Financial Stability Oversight Council (FSOC) "discussed current conditions in the banking sector and noted that while some institutions have come under stress, the US banking system remains sound and resilient," said the Treasury Department in a statement. The FSOC is chaired by the Treasury Secretary and its members include the heads of the Federal Reserve and Federal Deposit Insurance Corporation. "As of right now, the lack of another major bank failing this week is, in of itself good news," Sarhan from 50 Park Investments said. "There still remains a lot of questions with respect to the banking system, but for now, the market can breathe this sigh of relief," he added. (AFP)