European stock markets responded, This Monday, March 20, with profit to the absorption of the bank Credit Suisse by your competitor ubs, an optimism that many bank stocks rose to despite persistent volatility.
(See: UBS, the largest Swiss banking group, buys its rival Credit Suisse).
After opening in the red, the main European indices closed higher: Paris gained 1.27%, Frankfurt, 1.12%; London, 0.93%; Madrid, 1.31%; and Milan, 1.59%.
Among the rises in Europe was precisely ubs, that finally gained 1.26% after announcing the purchase of Credit Suisse for just over 3,200 million dollars. The share of the first Swiss banking entity had lost up to 15% of its value at the opening of the Zurich stock market.
Credit Suisse, for his part, sank 55.74% up to 82 cents per share, above the 76 proposed by UBS in its purchase offer. Five years ago, his share was worth around 15 Swiss francs.
“There is still “a lot of uncertainty” about how the situation is developing, said Jack Allen-Reynolds, euro zone economist at Capital Economics, who wonders where the current volatility could lead.
Banks, however, are not out of the woods yet: bank index losses Eurostoxx 600 rose to more than 13% last week and several large entities continued to fall, such as barclays (-2.29%), ENG (-0.66%), Deutsche Bank (-0.50%) or Societe Generale (-0.83%), although others such as the Spanish BBVA and Santander they closed in the green with gains of 3.23% and 2.77%, respectively.
The price of a barrel of Brent oil for delivery in May ended, this Monday, in the London futures market, at 73.79 dollars, 1.74% more than at the end of the previous session.
North Sea crude oil, a benchmark in Europe and Colombia, concluded the day on the International Exchange Futures with an increase of $1.26 from the last trade, when it closed at $72.53.
The rise came after a calamitous start to the day when Brent plunged 2.5% to $70.70 amid continuing fears of a global banking crisis.
The price of Texas Intermediate Oil (WTI), For its part, it also rose 1.3% and closed at $67.64 a barrel, managing to stop the deep fall of 13% the previous week, caused by the American and European banking storm.
(Here you can see more news about world markets).
Wall Street closed this Monday in green and the Dow Jones Industrials, Its main indicator rose 1.20%, when the banking turmoil that last week kept the stock markets in suspense seems to have calmed down.
At the close of operations, the Dow Jones rose 382.66 points, up to 32,244.64 and the selective S&P lor made 0.89% or 34.97 points and rose to 3,951.56 integers. For its part, the composite market index Nasdaq, In which the main technology companies are listed, it also rose, but to a lesser extent: 0.39% or 45.03 integers, to close at 11,675.54.
(See: This is how the Latin American left impacts investments in markets).
And all this despite the First Republic Bank does not emerge from the quicksand -despite the rescue “joint“announced by the big banks last week- and this Monday their actions they sank on the stock market below 47%.
All sectors closed in the green, being the biggest rises for the energy (2.11%), raw Materials (2.01%) and the industrial (1.36%).
BLS collapse.
EFE
Among the thirty Dow Jones stocks, the largest gains were for honeywell (2.84%), Dow (2.48%) and travelers (2.23%); only two technology companies closed in red, Microsoft (-2.58%) and Intel (-2.18%).
(See: At the end of 2023, definitive steps would be taken in the integration of stock markets).
Asia’s Major Stock Markets registered, this Monday, March 20, losses, including a drop close to 2.7% in Hong Kong, amid concerns about the banking crisis that began in the US and recently affected the Swiss entity Credit Suisse.
The red numbers predominated in the main indices of the region despite the fact that many analysts indicate that the situation is different from that of the 2008 crisis.
Hong Kong’s main floor index, the Hang Seng, it plummeted 517.88 points, 2.65%, despite the fact that the Monetary Authority of the Chinese semi-autonomous region applauded the agreement reached in Switzerland for the absorption of Credit Suisse.
(See: Credit Suisse abandons its wealth management business.)
Although the exposure of Hong Kong banks to Credit Suisse is minimal, the local daily South China Morning Post blamed the losses on “concerns about a growing global financial crisis following the losses imposed on investors in the forced merger of UBS and Credit Suisse“.
In Japan, the main index of the Tokyo Stock Exchange, he nikkei, which brings together the 225 most representative titles in the market, closed with some losses of 1.42%, with falls in three of the main Japanese banks: Mitsubishi UFJ (1.84%), Mizuho (2.33%) and Sumitomo Mitsui (1.67%).
The Tokyo Stock Exchange.
EFE
In South Korea, the landmark of the seoul parquet, the Kospi, fell 0.69%, while the selective Singapore Hardwood STI ended the day with losses of 1.37%. AND
Most of the exchanges in Southeast Asia also accumulated red numbers, including the main selective of Kuala Lumpur (-0.70%), jakarta (-0.98) and Manila (-0.95).
In India, the indicator sensex, which groups the 30 companies with the largest capitalization, contracted by 0.62%, while the index Nifty, where technology companies are listed, fell 0.65%.
The current banking crisis was triggered in the United States when some entities, including Silicon Valley Bank (SVB), went bankrupt on March 10, and, two days later, Signature Bank, exposed to the cryptocurrencies.
The fall of the SVB, exposed to technology companies and affected by the loss of value of Treasury bonds due to the rise in interest rates, is the largest failure of a bank in the United States since the collapse of the Washington Mutual in 2008.
For its part, the Swiss Credit Suisse, one of the banks least affected by the crisis of 15 years ago, fell 25% on the stock market on March 15, which caused fears of contagion and that the Swiss National Bank grant him a loan of 54,000 million dollars.
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