PARIS (Reuters) – The New York Stock Exchange opened in the red on Thursday after the European Central Bank (ECB) decided to raise its rates by half a point as expected despite recent turbulence in the banking sector.
In early trading, the Dow Jones index fell 0.7% to 31,656.90 points and the broader Standard & Poor’s 500 lost 0.57% to 3,870.85 points.
The Nasdaq Composite for its part yields 0.48% to 11,380.41 points.
The ECB confirmed on Thursday a 50 basis point hike in its key interest rate that it had suggested at its previous meeting, despite the turbulence in the banking sector which had increased the likelihood among traders of an increase of only 25 basis points.
New York-listed Credit Suisse shares climbed 0.5% on Thursday after the bank secured a credit line of up to 50 billion Swiss francs from the Swiss National Bank (SNB) to bolster its liquidity.
Fears about the banking sector nevertheless remain significant and US regional banks are still under pressure at the start of the session.
First Republic Bank, Western Alliance Bancorp and PacWest Bancorp fell by 31.3%, 14.6% and 11.9% respectively.
(Written by Blandine Hénault, edited by Kate Entringer)
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