LONDON, March 28 Reuters Global stocks rose and the dollar eased on Tuesday, after a deal backed by the U.S. regulator for First Citizens BancShares to buy up Silicon Valley Bank helped alleviate some of the recent concern about the health of the banking sector.

U.S. banking regulators said on Monday they planned to tell Congress that the overall financial system remains on a solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses.

With a little more stability returning to the banking sector, investors felt confident enough to ditch some of their recent safehaven purchases, meaning the price of bonds and gold edged lower, as did the dollar.

The MSCI AllWorld index, which is showing a loss of 0.1 so far in March, was up 0.2. European shares were roughly flat on the day.

U.S. stock futures, the SP 500 eminis , held roughly unchanged on the day, suggesting the benchmark index might not build on Monday39;s gains at the opening bell later.

Federal Reserve Governor Philip Jefferson said on Monday that stress among small banks could hit small businesses hardest.

Not only that, the extreme market volatility has forced a lot of investors to close positions, and prompted others to capitalise on some of those big price moves by betting those swings will die down, known as mean reversion trading.

This means that a lot of the confidence that appears to have returned to the markets might not be built on much…