ZURICH (Reuters) – Credit Suisse shares rebounded strongly at the opening of the Zurich Stock Exchange on Thursday after plunging the previous day following the decision of its largest shareholder not to provide further financial assistance to the bank.
Around 09:00 GMT, the title Credit Suisse takes 21.27%, signing the best performance of the Stoxx 600 (+0.4%). It had plunged the previous day at the close of nearly 25%, to 1.697 Swiss francs, to its lowest historical level, sowing panic on the financial markets, in reaction to the decision of its main shareholder not to return to the pot.
In a press release dated Thursday, the Swiss bank finally reassured the market by announcing that it would borrow up to 50 billion Swiss francs (50.6 billion euros) from the Swiss National Bank (SNB), the bank Swiss central office, in order to strengthen its liquidity.
In the wake of the rebound of Credit Suisse, the main French banks, Crédit Agricole (+ 1.05%), BNP Paribas (+ 1.53%) and Société Générale (+ 0.72%) regained Thursday morning a very small part of the ground lost Wednesday, while the European index of banks down 6.92% the day before, regained 1.62%.
JPMorgan analysts note, however, that the loan granted by the SNB will not be enough to allay investor concerns about Credit Suisse. “The status quo is no longer an option,” they write, hinting that a takeover of the Swiss bank may be the most likely outcome.
(Report John Revill; Claude Chendjou, editing by Kate Entringer)
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