European stock markets ended a tough week in sharp decline on Friday, with fears once again focusing on the banking sector despite various attempts to reassure investors.
Milan fell by 1.64%, Paris by 1.43%, Frankfurt by 1.33%, London by 1.01%, all these financial centers losing more than 4% over the week. The banking sector was once again strongly affected, in particular Credit Suisse which lost a quarter of its stock market value in one week.
Credit Suisse shares plunged again, closing down 8.01% at 1.86 francs (today’s low of 1.767 francs), as investor doubts persist despite the National Bank’s lifeline. Swiss. On the Swiss Stock Exchange, the SMI ended down 0.98% at 10,63.65 points.
>> Lire:
Credit Suisse shares end up 19% after SNB support et
After the rescue by the SNB, the press awaits Credit Suisse at the turn
The title of Credit Suisse had lost up to 30% during the session on Wednesday, pushing the Swiss National Bank to come to the rescue by making available to the number two Swiss bank up to 50 billion francs in cash.
This lifeline raises questions about an orderly bankruptcy, in which the regulator would take control of the bank and take charge of dismantling it.
Among the tracks considered, analysts at JP Morgan evoke a takeover by another bank, “with UBS as a potential option”.
>> See also the 12:45 p.m. press meeting on the scenarios awaiting Credit Suisse:
On Wall Street, the Dow Jones contracted 1.19%, the Nasdaq index lost 0.74% and the broader S&P 500 index fell 1.10%.
First Republic Bank plunged 32.8% after the bank announced it was suspending its dividend on Thursday.
American aid that does not reassure
Far from reassuring, the aid of 30 billion dollars provided by the major American banks to the regional bank First Republic Bank, victim of a crisis of confidence among investors and customers, rekindled panic on the markets on Friday.
Investors now fear a deep liquidity crisis for US regional banks and the impact of a Credit Suisse insolvency, as US banks have requested a total of $ 153 billion in liquidity from the US Federal Reserve (Fed). emergency in recent days, an amount greater than that released at the height of the 2008 financial crisis.
Loss of trustworthy
This reflects “funding and liquidity tensions on banks, due to the weakening of depositor confidence”, commented the rating agency Moody’s, which lowered its outlook on the American banking system to negative this week.
Gathered in an unscheduled summit, European Central Bank (ECB) supervisors, however, said on Friday that they did not see any contagion from the current turmoil to eurozone banks, according to a source, while the governor of the Banque de France, François Villeroy de Galhau, assured that the 50-point rate hike decided by the ECB on Thursday was a message of confidence in the banks.
>> The interview with Vincent Kaufmann, director of the Ethos Foundation, in the 7:30 p.m.:
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