Global equities pared some losses in the evening after it was reported that Swiss authorities and Credit Suisse are discussing ways to stabilize the bank. Few minutes ago, Swiss National Bank (SNB) officials reassured that Credit Suisse will receive liquidity if necessary, which eased some selling pressure. Of course Swiss lender would need to satisfy capital and liquidity requirements in order to receive support. SNB believes that Credit Suisse meets the capital and liquidity requirements imposed on systemically important banks
FINMA and SNB assert that the problems of certain banks in the USA do not pose a direct risk of contagion for the Swiss financial markets. Earlier Swiss Member of Parliament Thomas Matter said there is currently no discussion of state aid for Credit Suisse. Matter said he wouldn't be surprised if the SNB makes an announcement on Credit Suisse by Monday morning. Also some rumors emerged that Credit Suisse may be merged with another entity, perhaps its bigger rival UBS.
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
US100 managed not only to defend key support at 12000 pts but also erased all of the early losses and is trading marginally higher. Source: xStation5
