UBS buys Credit Suisse before Fed meets to decide on next rate move | MarketTalk: What’s up today? | Swissquote

Show notes

UBS bought Credit Suisse (CS) in a government-brokered deal for 0.76 cents of franc per share, or CHF3bn in total.
US dollar weakened and US futures opened in the positive but reversed losses while the Japanese Nikkei fell 1.42%, Hang Seng dropped more than 3%. HSBC lost 7%.
The next few hours of trading will give us a better picture on whether the crisis is contained. In theory, there is no reason for the Credit Suisse crisis to extend, as what triggered the last quake for Credit Suisse was a confidence crisis – which doesn’t concern UBS - a bank outside of the turmoil, with, in addition, ample liquidity and guarantee from the SNB and the government.
This week, investors will watch the Federal Reserve (Fed), Swiss National Bank (SNB) and Bank of England (BoE) decisions, after the European Central Bank (ECB) hiked rates by 50bp pointing at inflation looking ‘too high for too long’.
Bank stress benefited to Bitcoin and technology stocks, but not to crude oil.
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