Swiss authorities have announced that UBS will buy Credit Suisse after the bank became the target of another wave of mistrust; Investors are also awaiting the Fed’s rate decision
To the bags Asian markets closed lower on Monday 20 after Swiss authorities brokered the sale of the troubled Credit Suisse amid fears of a global banking crisis and waiting for a new interest rate decision from the Federal reserve (Fed, the central bank of the United States).
At around 7:20 (Brasilia time) in Zurich, Credit shares fell by 60.6% and UBS shares fell by 5.4%. European equity markets fluctuate close to stability. As of 7:34 am (Brasilia time), the London Stock Exchange was down 0.05%, while Paris was up 0.20% and Frankfurt was up 0.21%. That of Milan recorded a slight increase of 0.08%, that of Madrid remained stable and that of Lisbon fell by 0.11%.
Drive losses into AsiaHong Kong’s Hang Seng Index fell 2.65% to 19,000.71 points, while Japan’s Nikkei fell 1.42% in Tokyo to 26,945.67 points, South Korea’s Kospi fell 0 .69% in Seoul, at 2,379.20 points, and the Taiex registered a further modest low in Taiwan, of 0.21%, at 15,419.97 points.
In mainland China, losses were moderate: 0.48% for the Shanghai Composite, at 3,234.91 points, and 0.32% for the less comprehensive Shenzhen Composite, at 2,053.65 points. As expected, China’s central bank (PBoC) left its key interest rates unchanged today after announcing a reduction in bank reserve requirements late last week.
Last Sunday, the 19th, the Swiss authorities said that the UBS extension will buy Credit Suisse, in a $3.25 billion deal, after the Swiss bank was recently subject to another wave of mistrust. The deal came about a week after the bankruptcy of two US regional banks, the Silicon Valley Bank (SVB) and the Bank signature.
Investors are also eagerly awaiting the Fed’s interest rate decision, due to be released on Wednesday the 22nd. Bets are that the turmoil in the banking sector will lead the US CB to limit its interest rate hike to 25 basis points this week. , repeating the adjustment from the beginning of February.
In Oceania, Australian stocks closed today at their lowest level in four months amid concerns over the stability of the global banking system. The S&P/ASX 200 fell 1.38% in Sydney to 6,898.50 points. / WITH INFORMATION FROM DOW JONES NEWSWIRES
Source: Terra
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