The Paris Stock Exchange was again weighed down Monday by the banking sector following the takeover of the takeover at a discounted price of the bank Credit Suisse by its great rival UBS.
After an opening in the red, the star CAC 40 index briefly returned to positive territory before turning around in a climate of stock market nervousness: around 10:25 a.m., the Parisian coast yielded 0.47% to 6,893 points. Last week, the CAC 40 fell by more than 4%, its worst performance in six months.
The strong and rapid responses of the authorities reassure us, even if it is still too early to be sure that a systemic crisis is fast, commented Xavier Chapard, analyst at LBPAM.
Markets remain tight this morning, which suggests that confidence, the sinews of war when it comes to banks, remains very fragile, he continues.
UBS agreed on Sunday to buy struggling Credit Suisse, a 3 billion Swiss franc (3.03 billion euro) deal hastily concluded after intense negotiations with the federal government to save the country’s second-largest bank and restore confidence investors.
As part of this operation, which forms a behemoth of more than 5,000 billion dollars of invested assets, the Swiss National Bank grants cash assistance of up to 100 billion Swiss francs to the two establishments and the Swiss State grants a guarantee CHF 9 billion for potential losses related to assets taken over by UBS.
In the crowd of this announcement, the central banks of the United States, Europe, Switzerland, England, Canada and Japan announced on Sunday a coordinated action to improve access to liquidity, a kind of insurance to restore confidence in the financial system.
French Economy Minister Bruno Le Maire welcomed a good agreement on RMC / BFM TV on Monday and insisted that French banks are solid.
The two series of problems, Credit Suisse and failures of American regulation, do not concern French and European banks, assured Monday the Governor of the Banque de France.
A few days after an initial stock market shock caused by the bankruptcy of the American bank SVB, the difficulties of Credit Suisse, reinforced by the refusal of its first shareholder Saudi National Bank (SNB) to increase its stake in the capital, caused the markets to sway. last week.
The Swiss authorities announced on Sunday an agreement for UBS to buy its historic rival Credit Suisse for 3 billion Swiss francs.
In the bond market, short-term yields continued to fall sharply, signaling that investors consider at this stage and in this tense environment that the US Federal Reserve will not raise its rates on Wednesday at its next meeting.
Banks again under stress
Shares in Socit Generale fell by 4.83% to 20.18 euros, those of BNP Paribas by 3.57% to 49.84 euros and those of Credit Agricole by 2.40% to 9.75 euros.
Luxury and defenses support the coast
The luxury sector was evolving in the green image of Hermes (+1.27%), LVMH (+1.04%). The Oral took 1.28%. Defensive stocks such as Air Liquide (+1.39%) and Remy Cointreau (+1.03%) fulfilled their mission.