PARIS: Shares of Credit Suisse Group AG soared 40% after Switzerland’s central bank stepped in to support the lender, triggering a rally in bank shares across Europe on easing investor concern that the firm The trouble would trigger a global banking crisis.
euro stoxx bank index Shares climbed 3.5% at 9:09 a.m. in Paris after Wednesday’s 8.4% decline since March 2020, on growing concerns over the health of Credit Suisse. The broader Stoxx 600 bank index rose 3.1%. Credit-default swaps eased stress in debt markets.
Credit Suisse tapped the Swiss National Bank with up to 50 billion francs ($54 billion) and offered to repurchase debt. The chairman of the firm’s largest shareholder said in an interview with CNBC that the lender is unlikely to seek more capital and that the bank is generally “healthy”.
“While the measures taken should provide some comfort, a spillover to the sector may be contained, but the situation remains uncertain,” Anke Renzen, an analyst at RBC Capital Markets, wrote in a note to clients on Thursday.
credit suisse share It was up 31% to 2.22 Swiss francs in Zurich at 9:06 am. The biggest gainers in Europe included UniCredit SpA, Banco Santander SA, Deutsche Bank AG and Société Générale SA.
In a sign of easing tensions in credit markets, the iTRAX crossover, which reflects the cost of insuring Europe’s junk-rated companies against default, fell the most in three months in early trade. Meanwhile, Credit Suisse 1-year credit-default swaps tightened 448 basis points to 2,967 basis points, according to CMAQ data, as of 7:50 a.m. London time.
Market participants will be keeping an eye on the monetary policy decision by the European Central Bank at 2:15 pm Frankfurt time. The ECB’s plan to raise interest rates by another half a point has come under question from the banking turmoil that began in the US last week and continues with the Credit Suisse crisis.
Bloomberg Economics expects the central bank’s governing council to be more cautious than before.
euro stoxx bank index Shares climbed 3.5% at 9:09 a.m. in Paris after Wednesday’s 8.4% decline since March 2020, on growing concerns over the health of Credit Suisse. The broader Stoxx 600 bank index rose 3.1%. Credit-default swaps eased stress in debt markets.
Credit Suisse tapped the Swiss National Bank with up to 50 billion francs ($54 billion) and offered to repurchase debt. The chairman of the firm’s largest shareholder said in an interview with CNBC that the lender is unlikely to seek more capital and that the bank is generally “healthy”.
“While the measures taken should provide some comfort, a spillover to the sector may be contained, but the situation remains uncertain,” Anke Renzen, an analyst at RBC Capital Markets, wrote in a note to clients on Thursday.
credit suisse share It was up 31% to 2.22 Swiss francs in Zurich at 9:06 am. The biggest gainers in Europe included UniCredit SpA, Banco Santander SA, Deutsche Bank AG and Société Générale SA.
In a sign of easing tensions in credit markets, the iTRAX crossover, which reflects the cost of insuring Europe’s junk-rated companies against default, fell the most in three months in early trade. Meanwhile, Credit Suisse 1-year credit-default swaps tightened 448 basis points to 2,967 basis points, according to CMAQ data, as of 7:50 a.m. London time.
Market participants will be keeping an eye on the monetary policy decision by the European Central Bank at 2:15 pm Frankfurt time. The ECB’s plan to raise interest rates by another half a point has come under question from the banking turmoil that began in the US last week and continues with the Credit Suisse crisis.
Bloomberg Economics expects the central bank’s governing council to be more cautious than before.
,
- Advertisement -
