(CercleFinance.com) – European stock markets are starting the week with some caution (stability in London, +0.2% in Frankfurt, +0.1% in Paris), after the latest news on the financial sector front with the Credit Suisse-UBS Merger Agreement.
Credit Suisse collapsed by 60% in Zurich the day after the announcement of its merger with UBS (-7% for its part) at the request of the Swiss financial authorities, an operation which revealed a severe discount for existing shareholders.
“The deal may turn out to have been the turning point in the banking crisis we are currently experiencing, but we probably won’t know for a while,” Capital Economics said.
If it recognizes that ‘Credit Suisse will be absorbed by a healthier bank’, the analysis office recalls that the history of forced marriages in finance is to say the least mixed, as illustrated by the merger failed between ING and Barings in 1995.
A wait-and-see attitude also prevails ahead of the monetary policy meetings of the American Federal Reserve and the Bank of England, after that of the ECB which ended last Thursday with a new rate hike.
‘The next FOMC meeting promises to be the most far-reaching since the Fed started raising rates exactly a year ago, in March 2022’, it was estimated ten days ago at Oddo BHF.
In the meantime, the UK, Canadian, European, Swiss, Japanese and US central banks have announced concerted moves to improve the supply of liquidity through standing US dollar swap arrangements.
In terms of statistics, the next few days will see the ZEW index appear in Germany, then February inflation in the United Kingdom and the S&P Global PMI activity indices in Europe and the United States.
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