European stocks rise on the news of the rescue of Credit Suisse by the Swiss Central Bank
However, stock indices are still in the red
European stocks are rising on Thursday as shares of struggling lender Credit Suisse rebounded, with news of a loan from the Swiss National Bank partially allaying fears of a global banking crisis. Caution prevails on the markets ahead of the ECB's decision.
Source. It was reported by Reuters.
The pan-European STOXX 600 index rose by 0.9% by 11:45 Moscow time, having lost about 3% since the beginning of the week, as the bankruptcy of the American Silicon Valley Bank raised concerns about the global banking crisis and brought down stocks.
The banking sector index added 2.46% after a sharp daily drop of more than a year in the previous session.
Shares of Credit Suisse, which is at the center of the European banking crisis, rose by 24.22% after it was reported that the bank will take a $54 billion loan from the Swiss Central Bank to maintain liquidity and investor confidence.
The indices of Spain and Italy, in which bank stocks have a large weight, rose by more than 1.5% each.
However, the US stock indices Dow and S&P 500 are down on Thursday, as the Swiss Central Bank's assistance to the stricken Credit Suisse did little to improve investor sentiment, which was awaiting economic data to obtain information on the prospects for interest rates in the US.
The focus today is on the European Central Bank meeting, which will be the first major test of how officials will respond to the situation in the banking sector.
"Central banks are in a difficult position because they need to control inflation. But now they are facing another problem – a crisis of confidence in the banking system," said Andrea Cichone of TS Lombard.
Futures on the Dow by 15:02 Moscow time fell by 0.27%, the S&P 500 fell by 0.13%, the Nasdaq 100 rose by 0.31%.
Shares of Adobe Inc supported futures on the Nasdaq, rising 5.8% after the creator of Photoshop raised its profit target for 2023.
Facebook parent company Meta Platforms and Snapchat operator Snap Inc rose by 1.9% and 6.6%, respectively, after Joe Biden's administration threatened to ban TikTok.
As it was reportered, the American banking crisis after the fall of Credit Suisse has spread to Europe.
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