San Francisco Frontiers - Stocks mixed as bank fears recede

On Wall Street, the Dow opened higher but the S&P 500 and tech-heavy Nasdaq fell, while Europe's main indices seesawed in afternoon trading and Asia was mixed.

"Markets are uninspiring today because of the lack of fresh catalysts to encourage the bulls, following the recent financial-sector turbulence," said Fawad Razaqzada, analyst at City Index and Forex.com.

Most equity markets had advanced Monday as bank shares jumped after US lender First Citizens bought most of collapsed rival Silicon Valley Bank (SVB).

The gains followed last week's rout over concerns that the turmoil in the sector -- which sparked the UBS takeover of Credit Suisse -- could hit other major institutions, such as German giant Deutsche Bank.

While markets have responded positively to the measures implemented by authorities to shore up the commercial banking sector, there are still concerns about the impact of ongoing rate hikes by central banks, especially the US Federal Reserve.

Despite the recent turmoil, many central banks have pushed on with monetary tightening as they focus on fighting inflation.

"The first quarter is coming to an end amid growing realization in the market that even if the economy avoids a full-fledged banking crisis, current financial conditions and tightening monetary policy aren't conducive to a rally," analysts at Charles Schwab financial firm said in a note.

Bank of England governor Andrew Bailey, whose institution ramped up interest rates last week, sounded a note of caution over banking-sector upheaval.

"We are very vigilant. We are in a period of tension, tightness and alertness," he told a parliamentary committee on Tuesday.

He added: "My very strong view about the UK banking system is that it is in a strong position, both capital and liquidity wise. It is not showing signs of problems in that respect and we have tested very extensively."

In a separate development on Tuesday, French authorities raided five banks as part of an investigation into suspected cases of massive tax fraud and money laundering.

- Key figures around 1450 GMT -

New York - Dow: UP 0.2 percent at 32,493.69 points

London - FTSE 100: UP 0.2 percent at 7,483.48

Frankfurt - DAX: FLAT at 15,135.77

Paris - CAC 40: FLAT at 7,081.26

EURO STOXX 50: FLAT at 4,162.46

Tokyo - Nikkei 225: UP 0.2 percent at 27,518.25 (close)

Hong Kong - Hang Seng Index: UP 1.1 percent at 19,784.65 (close)

Shanghai - Composite: DOWN 0.2 percent at 3,245.38 (close)

Euro/dollar: UP at $1.0825 from $1.0803 on Monday

Pound/dollar: UP at $1.2308 from $1.2289

Euro/pound: UP at 87.94 pence from 87.88 pence

Dollar/yen: DOWN at 130.95 yen from 131.56 yen

Brent North Sea crude: FLAT at $77.74 per barrel

West Texas Intermediate: UP 0.1 percent at $72.87 per barrel

burs-lth/cw

F.Edwards--SFF