The FTSE 100 ticked higher on Tuesday morning as JP Morgan’s takeover of First Republic doused, for now, a still smouldering bank crisis.
“JP Morgan boss Jamie Dimon was quick to dismiss any comparison with 2008 – despite the regulator-brokered deal representing the second largest collapse in banking history – to which the obvious response is ‘he would say that wouldn’t he’,” says AJ Bell investment director Russ Mould.
“For now, the system has been able to absorb the shock of the collapse of Signature Bank, Silicon Valley Bank and now First Republic. If another domino was to fall then the relative calm seen in the market could soon break.
“UK housebuilders have been signalling some green shoots recently and house price growth picking up in April is just the tonic for a sector which has looked decidedly sickly for some time now.”