After UBS purchased Credit Suisse bank, European stock markets closed bigger on Tuesday as investors were at rest. European stocks ended slightly higher on Wednesday after UK inflation unexpectedly rose as investors worldwide awaited the Federal Reserve’s latest interest rate decision.
On Sunday, UBS agreed to purchase rival Credit Suisse for $3.2 billion (3 billion Swiss francs) in an urgent rescue deal. According to UBS, both banks will have $ 5 trillion of invested assets. UBS ascended from a loss to a 3.8% gain, while the share of Credit Suisse increased by 54%.
Credit Suisse shares were uncertain on Tuesday, closing up 7% in the afternoon. UBS increased by 12%.
European banks are expected to remain jittery despite the increased confidence, Emma Wall, head of investment research and analysis at Hargreaves Lansdown, said through email.
Wall added, “Last week’s ECB indicators are pointing to more rate hikes, a delicate balance to keep the eurozone from sliding into recession. The banking sector is the most sensitive to economic stability so growth rates will be crucial”.
The European Central bank elevated interest rates by 50 basis points last week. On Monday, ECB president Christine Lagarde said that while the recent turmoil in the financial sector could help bring down inflation, the rate increase will remain its main tool to bring prices down.
The gain on two-year German government bonds was increased to 2.56% on Tuesday afternoon. Reuters data shows it is on board for the huge daily increase since September 2008.
Markets are fastening for a two-day Federal Reserve policy meeting on Tuesday. Traders anticipate a quarter-point rate hike with an 85% probability, as CME Group’s FedWatch tool indicates.
US stocks rose after US Treasury Secretary Janet Yellen said on Tuesday morning that the government was ready to offer new deposit insurance to troubled banks.
Key Points: AUD/JPY broke below a rising wedge, signalling possible bearish momentum, with immediate resistance at 103.00 and support at…
Key Points EUR/JPY Rises to 168.25: Strengthened by robust Eurozone economy and steady ECB policy. Eurozone GDP Grew by 0.3%…
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
This website uses cookies.