European stocks climb on turbulent day as markets weigh on Credit Suisse bailout

European equities reversed heavy early losses and rallied on Monday, under the impact of bank stocks recovering from three-month lows triggered by UBS’s deal to buy Credit Suisse for a fraction of its value. market.

The pan-European STOXX 600 index closed up 0.98% at 440.60 points after falling nearly 2% earlier.

Banking shares rose 1.3% after UBS Group’s takeover of Credit Suisse, with state support, appeared to end a concern for the global banking sector.

Credit Suisse shares fell 55.7% after rival UBS said it would pay 3 billion Swiss francs ($3.23 billion) for the 167-year-old bank and assume losses of up to 5.4 billion of dollars.

UBS shares rose 1.3% after falling as much as 16% in a volatile session.

Mining led sector gains on Monday, up 2.8%, after copper prices soared amid a weakening dollar and signs of improving demand from China, a major consumer of the metal.

Meanwhile, European Central Bank (ECB) President Christine Lagarde said the financial market turmoil won’t hamper the ECB’s fight against inflation as there are separate tools to address the two issues.

The STOXX 600, which has already racked up a 10% gain for the year, is up just 3.7% this year after the collapse of Silicon Valley Bank and Signature Bank and troubles at Credit Suisse stoke fears for the health of the global banking system. system.

In LONDON, the Financial Times index advanced by 0.93%, to 7,403.85 points.

In FRANKFURT, the DAX index rose by 1.12% to 14,933.38 points.

In PARIS, the CAC-40 index gained 1.27%, to 7,013.14 points.

In MILAN, the Ftse/Mib index appreciated by 1.59%, to 25,899.57 points.

In MADRID, the Ibex-35 index recorded an increase of 1.31%, to 8,833.10 points.

In LISBON, the PSI20 index appreciated by 0.79%, to 5,769.33 points.

Source: Terra

Rose

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