by Laetitia Volga
PARIS (Reuters) – Wall Street is expected in scattered order on Thursday as European stocks rose mid-session, with Credit Suisse’s rebound encouraging a renewed appetite for risk pending announcements from the European Central Bank (ECB). .
The “futures” on New York indices signal an opening down 0.5% for the Dow Jones, 0.26% for the Standard & Poor’s-500 but up 0.23% for the Nasdaq.
In Paris, the CAC 40 gained 0.83% to 6,943.14 at 11:32 GMT. In Frankfurt, the Dax rose by 0.47% and in London, the FTSE by 0.72%.
The pan-European FTSEurofirst 300 index gained 0.1%, the EuroStoxx 50 in the euro zone advanced by 0.62% and the Stoxx 600 by 0.21%.
By announcing that it would exercise an option to borrow up to 50 billion Swiss francs (50.7 billion euros) from the Swiss National Bank, Credit Suisse allays investors’ concerns about its liquidity and sees its stock rebound from 22.27% after having unscrewed by 24.24% the day before.
Credit Suisse, which is on the list of so-called systemically important banks, is the first major global banking institution to receive emergency aid since the 2008 financial crisis and its difficulties add to the turmoil in the sector. since the bankruptcy of the American banks SVB, Silvergate and Signature.
It is in this troubled context that the officials of the European Central Bank are meeting this Thursday. Their decisions will be communicated at 13:15 GMT. A week ago, a rate hike of 50 basis points was almost guaranteed. Now, that scenario and the likelihood of just a quarter-point hike are neck and neck, according to market estimates.
“The ECB will have to stick to the separation principle: steer monetary policy to achieve the inflation target and use other tools to ensure financial stability,” BNP Paribas said. “Interest rates are probably not the right tool in the face of a liquidity problem”.
VALUES IN EUROPE
Despite Credit Suisse’s rebound, the European banking sector index only recovered 0.26%, after posting its biggest one-day drop (-6.92%) since the invasion of Ukraine on Wednesday. by Russia.
JPMorgan believes a takeover of Credit Suisse would be the most likely scenario, especially by rival UBS.
“We believe that the SNB’s support for liquidity, as indicated on Wednesday evening, is not sufficient,” the analysts wrote, further citing a continuing problem of market confidence in the strategy. in investment banking.
In Paris, Societe Generale yields 1.16%, Crédit Agricole 0.45% and BNP Paribas gains 0.79%.
EXCHANGES/RATES
The euro and Swiss franc erased some of yesterday’s losses as traders welcomed the Swiss central bank’s support for Credit Suisse.
The single currency gained 0.28% to 1.0605 dollars after losing 1.4% on Thursday, its biggest drop in six months.
The renewed appetite for risk pushed the dollar down (-0.17%).
Pending the ECB’s announcements, the yields on government bonds in the euro zone are posting a sharp rebound, to 2.257% for the ten-year German Bund and to 2.813% for the French OAT of the same maturity.
On the American market, the ten-year yield continues to decline, around 3.4585%.
OIL
After hitting its lowest level in 15 months on Wednesday, the oil market remains in the red, despite the lifeline thrown by the SNB to Credit Suisse.
Brent fell 0.41% to 73.39 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.55% to 67.24 dollars.
(Laetitia Volga, editing by Kate Entringer)
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