European markets open to close, earnings, data and news

Shares of First Republic fell 18% in extended trading, negating the afternoon’s rally fueled by a $30 billion deposit plan announced by the country’s largest banks.

While the move brings First Republic a significant cash pile, the bank announced after the bell that it had borrowed tens of billions of dollars from the Federal Reserve and the Federal Home Loan Bank over the past week. Deposit outflows have now “slowed down significantly,” the bank said.

First Republic also announced that it is suspending its common stock dividend.

— Jesse Pond

Former Reserve Bank of India governor Raghuram Rajan thinks it is too early to say whether the US bailout to contain the risks of bank contagion has worked.

“I think what’s happened so far, in terms of rescues, is kind of first aid. The question is — is there still slow bleeding,” he told CNBC’s “Street Signs Asia.”

“I feel like we won’t know if the Fed has been successful with this rescue mission until several weeks have passed and we don’t see any more problems.”

Rajan, now a professor of finance at the University of Chicago’s Booth School of Business, noted that questions remain about the collapse of Silicon Valley Bank.

“There are a lot of questions here that need to be answered,” he said. “How is it that a medium-sized bank was not aware of the interest rate risk?”

He added that regulators need to restore confidence in small and medium-sized banks, and that means “stating very clearly that the banks with problems have been solved and I think we are not there yet.”

— Sumathi Bala

European equity markets are expected to open higher across the board.

The UK FTSE index is expected to rise 45 points to 7,454.7, according to IG data, while the DAX is expected to rise 32.5 points to 15,030.9. France’s CAC is expected to rise 23.5 points to 7,066.1, while Italy’s MIB is expected to rise 150 points to 25,621.5.