Today's stock markets March 16: Credit Suisse gains 9%
Positive departure for Piazza Affari. The FtseMib index at the start gains 1.53% to rise above 2% in the first ten minutes of trading. Yesterday Milan had lost more than 4% in the wake of the collapse of Credit Suisse, the second largest Swiss bank. The other European markets are also positive, with Frankfurt up by half a percentage point. In Zurich Credit Suisse scores a robust +9% at the start.
The rally in early day trading was supported by Cs' announcement of an option to borrow up to 50 billion Swiss francs ($54 billion) from the central bank. Yesterday the Swiss authorities had spent on assurances, according to which the credit institution meets "the capital and liquidity requirements imposed on systemically important banks" and can access central bank liquidity in case of need.
After yesterday's sharp falls early this morning, in the pre-stock market, Credit Suisse shares gained 21%. The Swiss bank's announcement also helped stem the heavy sell-off in financial markets in Asia following tough trading sessions in Europe and the US caused by investor fears of possible bank runs.
Meanwhile, eyes are fixed on today's meeting of the European Central Bank and on the words that will come from Christine Lagarde, head of the Institute.