European stocks continue to recover as banking concerns ease

European stocks rose on Tuesday as investors’ hopes of containing the banking crisis revived after a deal to take over the deposits and loans of the collapsed US bank Silicon Valley.

The European Stoxx 600 index rose 0.7 percent by 0708 GMT, continuing the rise for the second day in a row, after losses last week in bank shares that resulted from the collapse of Credit Suisse and two medium-sized US banks.

The European banking sector index rose 1.6 percent, after rising 1.4 percent on Monday.

Shares in Swiss bank UBS jumped 2.4 percent after Chief Executive Ralf Hammers said in an internal note seen by Reuters that the bank saw its acquisition of Credit Suisse, which was overseen by Swiss authorities, as an opportunity for growth.

Credit Suisse shares rose 3.1 percent.