The recent market rout has forced Credit Suisse to seek a financial lifeline from the Swiss central bank. Its shares rebounded more than 30 percent at the open on Thursday after seeing a freefall the previous day.
European stock markets experience a slight rebound on Thursday, after Credit Suisse secured a big financial lifeline and ahead of the European Central Bank’s crucial interest-rate decision. Frankfurt, London, and Paris gained modestly, recovering from the previous day’s plunge, caused by fears surrounding the health of Credit Suisse and the wider banking system following the collapse of two US lenders.
The euro advanced against the dollar in anticipation of the ECB’s rate decision on Thursday. Meanwhile, oil prices dipped slightly, following their lowest levels in 15 months. Investors await the ECB’s interest rate decision, the first major central bank call since markets were shaken by banking crisis fears.
Some investors believe that the ECB should reconsider its plans, following the collapse of Silicon Valley Bank and Signature. There is also much debate on whether the US central bank will continue with its rate tightening campaign, with some commentators expecting officials to lift rates once more next week but possibly hold afterward, while others believe it could even announce cuts before the end of the year.
The market remains anxious, concerned about a repeat of past crises and its implications for the financial system and global economy. Craig Erlam, a senior analyst at the OANDA trading group, said, “Of course, this is natural when so little is known about the situation and what it ultimately means for the health of the rest of the system.”
——————————————————————————-
It would mean the world to us if you follow us on Twitter, Instagram and Facebook.
At Newscazt, we strive to bring you the latest news and stories from India, World, Business, Sports, Entertainment and more. Our team of experienced journalists and writers are committed to delivering accurate and unbiased news and analysis.
