Source: Wind

Us stock index futures rose on Tuesday as traders tried to extend the previous day's rally, Hong Kong's Wande News Agency reported. The previous session's rally was triggered by investors' hopes that banking turmoil would be brought under control.

Shares of bank of the first republic rose sharply before trading after falling more than 47% on Monday. There are reports that Jamie Dimon, chief executive of JPMorgan Chase & Co, is discussing new measures to stabilize the bank.

In additionU.S. Treasury Secretary Yellen said Tuesday that the U.S. government is prepared to provide further guarantees for deposits if the banking crisis worsens.

Preparing to address the American Bankers Association (American Bankers Association), Ms. Yellen said authorities believe they have taken appropriate measures to curb liquidity problems in the banking sector, but that more will be done if necessary.

"the measures we are taking are not designed to help specific banks or bank categories," she said. Our intervention is necessary to protect the broader Bank of America Corporation system. " "if smaller institutions run on deposits, there is a risk of contagion and similar action may be necessary."

Dow Jones industrial average futures rose 255 points, or 0.8%. S & P 500 index futures and Nasdaq 100 index rose 0.8% and 0.4%, respectively. In addition, German and French benchmark stock indexes both rose by more than 1.5 per cent.

Regional banks rose sharply before trading.$First Republic Bank (FRC.US)$It rose more than 22% before trading, and the battered bank fell 47% the day before.$Spdr Series Trust S&P Regional Bkg Etf (KRE.US)$Up 3%.

Wall Street has just finished a strong rally, with the Dow up more than 380 points on Monday and the S & P 500 up 0.9%. A day earlier, Swiss Bank (UBS) forcibly acquired under the planner of the Swiss government.$Credit Suisse (CS.US)$. Investors are also right$JPMorgan (JPM.US)$The news that strategic alternatives may be provided to the troubled Bank of the first Republic is welcomed.

"the bank sell-off seems to have been exhausted," Adam Crisafulli, founder of Vital Knowledge, said in a report.

Given the banking crisis, investors now expect the pace of monetary tightening by the Federal Reserve to slow. Traders now expect an 83 per cent chance of the Fed raising interest rates by 25 basis points when it ends its two-day policy meeting on Wednesday, according to CME Group's FedWatch tool. The probability of a pause is 16.6%.

Jeffrey Roach, chief economist at LPL Financial, said: "the risk of contagion is rising and could force the Fed to suspend the current rate hike cycle, although this is not our basic assumption." "as the risk of recession increases and inflationary pressures fall, the Fed is likely to signal that the rate hike is coming to an end."

While concerns about banking contagion may be subdued by the Credit Suisse rescue deal, Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group, believes the stock market is not out of the woods yet.

"even if the market rebounds from current levels in the short term, a high degree of uncertainty and reduced levels of confidence may mean that the market will continue to fluctuate because valuations do not look particularly attractive," he said. "

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