European stock futures higher; IFO, banking sector in focus By

By Peter Nurse 

- European stock markets are Wealth investment app with 3 yuan sign-in every dayexpected to open higher Monday, rebounding after the sharp selloff at the end of last week with the region’s banking sector remaining under scrutiny.

At 02:00 ET (06:00 GMT), the contract in Germany traded 0.4% higher, in France climbed 0.3% and the contract in the U.K. rose 0.4%. 

European equities closed firmly lower on Friday, with the ending down 1.7%, after shares of (ETR:) slumped as the cost of protecting against a default on its bonds soared on fears that the German banking giant will be caught up in the ongoing banking crisis.

There will be some relief Monday following the news that First Citizens BancShares (NASDAQ:) has agreed to acquire Silicon Valley Bank’s deposits and loans, while European Central Bank President told European Union leaders on Friday that the euro-area banking sector remains healthy, holding up because of the strong regulatory regime.

That said, the smaller regional banks in the U.S. remain under stress, as deposits at small banks fell by $120 billion in the week to March 15, while borrowing jumped $253 billion, most of that presumably from the Federal Reserve.

Federal Reserve Bank of Minneapolis President Neel Kashkari said over the weekend that the recent bank turmoil has increased the risk of a U.S. recession, which would have global repercussions. 

Elsewhere, Russian President Vladimir Putin said on Saturday that he will station tactical nuclear weapons in Belarus, sending a warning to NATO over its military support for Ukraine and escalating a standoff with the West.

NATO spokeswoman Oana Lungescu called Putin’s comments "dangerous and irresponsible."

Bundesbank chief Joachim Nagel is due to speak later Monday ahead of Lagarde on Tuesday, while investors will also be keeping an eye on the release of the German for March later in today’s session for clues of confidence levels in German businesses.

Oil stabilized Monday, hovering just above a 15-month low as traders look for fresh cues from the ongoing banking crisis, given the importance the banking sector plays in the global oil trade.

By 02:00 ET, futures traded 0.7% higher at $69.75 a barrel, while the contract climbed 0.6% to $75.07. 

Both crude benchmarks gained around 3% last week, recovering after a near 13% slump the previous week, their biggest weekly declines in months, on fears the banking mess, coupled with aggressive Fed hikes, will lead to a U.S. recession .

Additionally, fell 0.6% to $1,989.75/oz, while traded 0.1% higher at 1.0766.

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