A steadier tone in global stocks continued on Thursday as investors hoped the banking sector had turned a corner on its recent turmoil to help markets end the quarter on a positive note.
The dollar and crude oil prices were stable, with calmer markets allowing investors to focus more on the economy, as Spanish inflation fell more than expected in March.
Global stocks (.MIWD00000PUS) were up 0.3% and on course for a 4.9% quarterly gain.
"We are starting to see a little bit of stabilisation, there is a perception that somehow the banking crisis is behind us," said Mike Hewson, chief markets analyst at CMC Markets.
"The next few days are going to be a key test of this stabilisation with month end, and quarter end, coming up when you have a lot of funds doing a tidy up, then suddenly it's where do we go from here?"
In Europe, the STOXX (.STOXX) index of 600 leading companies rose 0.8% to hit a two-week high.
Analysts said the relief rally on Wall Street on Wednesday raised spirits among investors, underpinned by firmer U.S. stock index futures , on Thursday. The rates-sensitive Nasdaq (.IXIC) is up nearly 14% this year and heading for its best quarter in more than two years.
As the dust settles on a wild and volatile ride after Silicon Valley Bank's collapse unleashed fears of a broader banking crisis, the winners appear to be bonds and large tech companies that tend to benefit when interest rates fall.
Kevin Thozet, investment committee member at Carmignac, said investors were taking stock after a volatile quarter of big swings in the outlook for the economy, inflation and interest rates.
"We are seeing a correlation between risk on and risk off assets working again, which was not the case a year ago," Thozet said, adding the trajectory of hiking interest rates is coming to an end.
"We think there is value is being long in duration, in buying those bonds issued by well rated issuers in the U.S. or in the euro area," Thozet said.
