The value of the shares in Credit Suisse fell by more than 30 percent yesterday, and this happens less than a week after the collapse of the major American bank Silicon Valley Bank. The share crash led to a large stock market fall in Europe and in Norway the main index on Oslo Børs ended down 3.74 per cent. On Thursday night, it became clear that the Swiss central bank will come to Credit Suisse’s rescue with a loan of NOK 577 billion. The news meant that the stock exchanges in the USA recouped large parts of the decline before closing time. – The authorities will go to great lengths Erik Bruce in Nordea believes the stock market day will be better today. Photo: Moment Studio Trading opens at 9 a.m. on Oslo Børs. Chief analyst at Nordea Erik Bruce believes the loan from the Swiss central bank will have a calming effect on the market. – I think it will open positively today because of the rescue operation. But I think it’s going to be very uncertain in the coming weeks. If we get bad news about banks elsewhere, it will have much greater consequences than normal, says Bruce to news. In advance trading on the Swiss stock market on Thursday, Credit Suisse shares are up 21 percent. The unrest in the Swiss major bank was triggered by the fact that the Saudi Arabian main shareholder in Credit Suisse stated that it was not appropriate to give the bank more financial assistance. – This loan illustrates that the authorities around the world are willing to go to great lengths to secure the banks so that we avoid a banking crisis and bank bankruptcies, says Bruce. He says Credit Suisse is a system-critical bank and subject to strict regulation. A bank the authorities will go to great lengths to save. – This is a large bank which, if it were to collapse, would have completely different consequences, says Bruce. – No general banking crisis Despite the bank collapses in the US and the stock crash for Credit Suisse. Bruce does not believe we are facing a major financial crisis. – Banks depend on trust from owners, depositors and lenders. It is that trust that is now slightly weakened with what has happened in the US and unrest around the entire banking situation. – I do not think we are facing a general crisis because the banks are not losing out on lending to businesses and consumers. That is the usual justification when there is a general banking crisis. Bruce says the uncertainty now is due to the banks sitting on large holdings of government bonds which have lost value due to the interest rate increases. – But this is something the authorities can handle. They can lend the banks money against these safe bonds, and then the problem becomes much smaller. Therefore, I think we are facing manageable problems, says Bruce to news. Stock markets fall in Asia The economic turmoil also had an impact on the stock markets in Asia when they opened on Thursday. After only a quarter of an hour of trading, the main Nikkei 225 index was down 2.2 percent, while the broader Topix index had fallen 2.5 percent. However, they recovered somewhat during the day, and at the break the Nikkei 225 was down 0.9, while the Topix was at minus 1.3. In Hong Kong, the main index Hang Seng had fallen 1.2 per cent after an hour and a half, while the main indices in Shanghai and Shenzhen were respectively 0.4 and 0.6 per cent down.
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Thinks the emergency loan to Credit Suisse will result in a trading day in the plus – news Urix – Foreign news and documentaries
