In Switzerland, banking stocks fell sharply, still rocked after the forced takeover of Credit Suisse by UBS. In New York, Wall Street gave ground in the morning, worried about the earthquake which continues to shake the western banking sector, with Deutsche Bank now in sight (read framed). This establishment appears, in the eyes of the market, as the new weak link of the banking system, after the bankruptcy of three American establishments and the takeover in disaster of Credit Suisse.
This latest development “fuels concerns about the health of the banking system,” said Quincy Krosby of broker LPL Financial. “We sell first and ask questions later,” he explained. “Investors don’t want to wake up on Sunday to find that Deutsche Bank has deteriorated like Credit Suisse.”
Places also fell by 1.74% in Paris, 1.66% in Frankfurt, 1.26% in London after a first part of the week in the green following the takeover of Credit Suisse.
Only three winners
The Swiss SMI index ended down 0.79% at 10,634.04 points, with a low of 10,561.63 points and a high of 10,669.04 points. Of the 30 star stocks, Novartis (+0.7%), Zurich Insurance (+0.6%) and Roche (+0.02%) are the only winners of the day. Nestlé ended unchanged.
The volatile AMS Osram (-8.2%) finished in the red lantern, behind the good Schindler (-5.8%) and Credit Suisse (-5.2% to 0.7592 francs). UBS (-3.6%) also fell sharply, while Julius Bär (-1.0%) relatively limited the breakage.
According to sources cited by the Bloomberg agency, the two big banks are, along with several other banks, in the crosshairs of the US Department of Justice (DoJ) for alleged circumvention of sanctions against Russia.
>> Viviane Gabriel’s analysis in the 7:30 p.m.:
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