Negative start for European stock markets in the aftermath of the Credit Suisse bailout agreement. Global central banks step up swap operations to boost global liquidity. The spread rises to around 200 points
Negative start to the week for the European stock exchanges, weighed down by fears related to banks. The index loses more than 2% in the first moments, black jersey in Europe, while the Frankfurt one loses 1.5% together with London. up to 194 basis points. In Piazza Affari, pressure on the banks: Bpm (BIT:), Mps (BIT:) and Unicredit (BIT:) drop more than 4%.
CREDIT SUISSE RESCUE
Despite the intervention of central banks e the Credit Suisse bailout deal fears of other possible banking crises remain on the markets. At the moment, the stock market is paying the price, with investors looking for safer assets. Over the course of a hectic weekend, UBS closed on the purchase of its rival Swiss credit for 3 billion Swiss francs (0.76 Swiss francs per share), well below the capitalization of the banking giant in a liquidity crisis. The operation provides for the elimination of the riskiest bonds. The rescue operation was orchestrated by the Swiss central bank, which made available a credit line of 100 billion francs. The integration of the two institutes is estimated to generate an annual cost reduction rate of more than $8 billion by 2027. In today’s early trading, UBS is down about 8%, Credit Suisse is down more than 60%…
** This article was written by FinanciaLounge