(News Bulletin 247) – The Parisian index regained more than 2% this Thursday at the close, after the Swiss authorities came to support the Swiss establishment. For its part, the ECB made the right decision by raising its rates by 50 basis points, according to experts.

The Paris Stock Exchange had a volatile session but ended up clearly in the green. The CAC 40 gained 2.03% to 7,025.72 points, rebounding slightly from its 3.58% plunge on Wednesday.

Fears about the bank Credit Suisse, which collapsed on the stock market on Wednesday, have eased somewhat thanks to the intervention, in particular, of the Swiss National Bank (SNB), which has indicated that it is ready to make cash available to the Swiss bank. In the process, Credit Suisse decided to activate an option allowing it to borrow up to 50 billion Swiss francs from the SNB.

Strong interventions that allow Credit Suisse shares to regain 19.15% on the Zurich Stock Exchange on Thursday. Still, the fact that the Swiss bank has found it useful to activate this option may not be completely reassuring.

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The ECB had no choice

“These measures are not enough to get Credit Suisse out of the woods completely, it is about restoring market confidence through the complete exit of the investment bank, a full guarantee on all deposits by the SNB and injection of equity to give Credit Suisse time to restructure,” Charles-Henry Monchau, investment director of Banque Syz, told the newspaper. The weather.

The markets also find satisfaction in the announcements of the European Central Bank (ECB). The European institution finally kept its commitment to increase its rates by 50 basis points (0.5 percentage points). But, contrary to previous meetings, it no longer made any references to the potential next rate changes in the coming months.

Its president, Christine Lagarde, acknowledged that “uncertainties had risen” due to recent tensions in the markets. But she assured that the banks of the euro zone were solid. The vice-president, Luis de Guindos, abounded stressing that the exposure of establishments of the euro zone to Credit Suisse was “quite limited” and not “concentrated” on a few banks.

For Yannick Lopez, director of rate management at OFI AM, the ECB made the right decision by raising its rates by 50 basis points. “If they had done less, clearly that would have cast doubt,” he said in News Bulletin 247.

Luxury in support

“The ECB certainly had no other choice in terms of communication than to increase its main interest rate by 50 basis points, to 3%, in line with what it had let it predict. Any other decision would have called into question causes its credibility”, abounds William Gerlach, regional manager of iBanFirst.

As for values, the banks, which had plunged, struggled to rebound. BNP Paribas gained 1.3% and Credit Agricole SA gained 0.02% while Societe Generale fell 1.2%. The rise in the CAC 40 was driven by luxury, Hermes taking 4.7%, LVMH 3.5%, L’Oreal 3.4% and Kering 2.5%.

On the other markets, the euro recovered 0.4% against the dollar at 1.0619 dollars. Oil prices are amorphous. The contract on Brent from the North Sea for delivery in May was almost stable at 73.72 dollars a barrel, while that for April on WTI listed in New York fell 0.2% to 67.55 dollars a barrel.