European stock markets were trading notably higher on Tuesday, 21 March 2023, as fears of global banking contagion eased, thanks to the latest efforts to address turmoil in the banking sector, including state-backed rescue deal of Swiss lender Credit Suisse over the weekend.

At 14.55 GMT, the pan European Stoxx 600 index was up 1.35% to 446.54. The U.K.'s FTSE 100 index added 1.7% to 7,529.34. France's CAC40 index inclined 1.54% to 7,121.21. Germany's DAX index rose 1.8% to 15,200.88. Switzerland's Swiss Market index gained 1.33% to 10,785.48.

Regulators in the UK and Europe sought to restore confidence in the market on Monday after the UBS takeover of Credit Suisse. In the US, regulators are studying plans to guarantee all deposit if the banking crisis continues to worsen

UBS on Sunday agreed to buy its embattled rival Credit Suisse for 3 billion Swiss francs ($3.2 billion) in a merger engineered by Swiss authorities to avoid more turmoil in the banking group. Following the emergency rescue, the combined bank will have $5 trillion of invested assets, according to UBS.

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