The main European stock markets opened on a low this Monday, after the acquisition of Credit Suisse by UBS, which does not allay fears for the banking sector.
At 8:40 a.m. in Lisbon, the EuroStoxx 600 fell 1.60% to 429.22 points.
The stock markets of London, Paris and Frankfurt fell by 1.60%, 0.94% and 1.81%, as did those of Madrid and Milan, which fell by 2.27% and 2.48% respectively.
After a downward opening, the Lisbon stock exchange maintained its trend and at 08:40 the main index, the PSI, fell by 1.50% to 5,638.18 points.
Shares of UBS bank fell 8.77% at the opening of the Zurich stock exchange after a deal to buy Credit Suisse, its traditional rival that was facing bankruptcy due to an irreparable crisis of confidence.
The Swiss government offered substantial guarantees for the deal to go through – using certain emergency tools – on the grounds that the collapse of Credit Suisse could trigger a financial crisis not only domestically but globally.
UBS has agreed to buy Credit Suisse for EUR 3,000 million, a price it will pay in shares only, valuing the acquired entity’s shares at 40% of their value at the end of the last trading day.
Today, a day of general decline in Europe, the market will analyze UBS’ purchase of Credit Suisse and the concerted action of major central banks to provide liquidity to the system.
The day started with Brent, Europe’s reference crude, falling sharply 2.69% to $71.06 as futures on Wall Street’s key indicators expect losses of more than 1% today ahead of the meeting of the Federal Reserve (Fed) next Wednesday.
On Friday, the New York Stock Exchange ended at an all-time low, with the Dow Jones falling 1.19% to 31,861.98 points, against its high since its inception in 1896, of 36,799.65 points, recorded on January 4, 2022.
The Nasdaq closed 0.74% lower to 11,630.51 points, from its current high of 16,057.44 points verified on November 16, 2021.
At the exchange rate level, the euro opened lower on the Frankfurt stock exchange to trade at $1.0638, down from $1.0670 on Friday and $1.0909 on February 2, its highest level since April 2022.
The euro has been trading above parity against the dollar since November 7, after being below parity since September 20, with the exception of October 26 ($1.0076).
Source: DN
