Financial markets were expecting relief on Monday after UBS Group AG agreed to buy Credit Suisse Group AG as part of a government-sponsored bailout and major central banks announced coordinated action to shore up liquidity in the financial system.

Data from the EBS and Reuters Dealing trading platform suggests that early risk appetite should rebound, with the euro, sterling and Australian dollar rising. The cryptocurrency bitcoin is up more than 5%.

UBS will buy rival Swiss bank Credit Suisse for 3 billion Swiss francs ($3.23 billion) and has agreed to take losses of up to $5.4 billion as it winds down its smaller investment bank following a merger planned by Swiss authorities.

Meanwhile, in a coordinated global response, central banks, including the Federal Reserve, said they would expand dollar swap lines to help soothe investors agitated by turmoil in the banking sector.

S&P 500 futures rose 0.2 percent in choppy early trading in Asia. The safe-haven yen remained steady.

The bankruptcy of two U.S. banks and the collapse of Credit Suisse shares sent shockwaves through markets last week, bringing back memories of the 2008 financial crisis.

European banks fell nearly 12% last week, their biggest weekly drop in just over a year, Japanese banks fell nearly 11%, their biggest weekly drop since the COVID-induced market turmoil of March 2020, and US bank stocks have suffered double-digit losses for two straight weeks.