U.S. stock index futures rose with European stocks as the prospect of further support from US authorities eased some concerns over the troubled regional banking sector. Contracts on the S&P 500 rose about 0.3%. First Republic Bank shares jumped 34%, leading regional peers higher, after Bloomberg reported that US authorities are considering expanding an emergency lending facility that would give the lender more time to boost its balance sheet. The Treasury 10-year yield rose about nine basis points. A gauge of dollar strength was steady. European equities climbed, with a gauge of bank stocks in the green. Deutsche Bank AG rose and Credit Suisse AG was higher after last week’s steep losses. Novartis AG surged, pushing healthcare peers higher, after promising trial results for a cancer drug. Traders are in for another bumpy week: developments in the banking sector will be closely watched, while remarks from multiple Federal Reserve officials and data on a key US inflation measure are also due. Fed Minneapolis President Neel Kashkari said over the weekend that bank turmoil had increased the risk of a US recession. “Fed speak should once more garner attention as markets assess how officials balance the ongoing banking sector stress against still-high inflation,” said Eddie Cheung, a senior strategist at Credit Agricole CIB. “Some early indications over the weekend point to a softening in hawkish language and a lowering in rate expectations. Meanwhile, market sentiment is likely to remain fragile.” Authorities are said to be considering expanding an emergency lending facility for US banks in ways that would give First Republic Bank more time to shore up its balance sheet. Yet investors in the bond market already see the wider damage in the sector running its course. They piled into wagers last week that a recession is around the corner, axing bets on any further tightening and ramping up bets for rate cuts. In the banking sector, First Citizens BancShares Inc. climbed 24% after it on Monday agreed to buy all deposits and loans of SVB Financial Group’s Silicon Valley Bank after it was seized by the regulators. Top US regulators said after a meeting Friday that while some banks are coming under stress, the overall financial system is still sound. The next risk to equities will likely come from earnings, according to Morgan Stanley’s Michael Wilson — among the most prominent bearish voices on US stocks. “Given the events of the past few weeks, we think guidance is looking more and more unrealistic, and equity markets are at greater risk of pricing in much lower estimates ahead of any hard data changes,” Wilson wrote in a note on Monday. Investors will be closely watching data on the personal consumption expenditures price index, which is the Fed’s preferred measure of underlying price pressure, that will come out later this week for direction on the US central bank’s rate path. Also in focus are renewed geopolitical tensions, with Russia to station tactical nuclear weapons in Belarus. Elsewhere, oil rose, while gold slipped. A gauge of Asian equities fell for a second day. Hong Kong stocks fell, following a two-week advance, amid concerns about the strength of China's economic recovery as corporate earnings reports from some of the nation's biggest companies trailed estimates. The Hang Seng Index dropped 1.8 per cent to 19,567.69 at the close of Monday trading. The Tech Index slipped 2.8 per cent while the Shanghai Composite Index slid 0.4 per cent. Key Asian markets were mixed. The Nikkei 225 in Japan added 0.3 per cent and the S&P ASX 200 Index in Australia rose 0.1 per cent, while the Kospi in South Korea slipped 0.2 per cent. Oil prices rose on Monday after a halt to oil exports from Iraqi Kurdistan via Turkey and moves to contain a potential banking crisis that could have hit demand for crude. Brent crude futures were up $1.16, or 1.6%, at $76.15 a barrel by 1210 GMT. West Texas Intermediate U.S. crude rose $1.19, or 1.7%, to $70.45. Brent gained 2.8% last week while WTI rebounded by 3.8% as jitters in the banking sector eased. Gold prices slipped on Monday as a rebound in equities dented the metal's safe-haven appeal, while investors evaluated steps taken by authorities to calm fears of a crisis in the global banking system. Spot gold was down 1.4% at $1,949.99 per ounce as of 1219 GMT. U.S. gold futures fell 1.5% to $1,954.20.