Credit Suisse’s fragile situation strikes banks on the stock market again, adding to uncertainty

Uncertainty hits markets again. In the middle of the session, Spanish banking He is once again the hero of Ibex, with the sharp declines confirming that the fear of international contagion from the crises that began with the bankruptcy of the Silicon Valley Bank has by no means disappeared. Added now is the delicate situation of Swiss giant Credit Suisse, which noticed internal problems in its risk control and had a loss of 7,400 million euros in 2022. HE sabadell drops more than 11%, banker more than 7% left, BBVA lost 10%, Santander fell 7%during Caixabank Provides 6% efficiency in line with Unicaja down 6.8%. During, Inditex fell 4.97% This further aggravates the selective decline, although the company published in 2002 that it increased its net profit by 27% to 4,130 million and billing increased by 17.5% to 32,569 million. Other European assets are also affected by the earthquake caused by the Swiss establishment. French BNP Paribas titles remained at 8% and Société Générale 9%. Germany’s Deutsche Bank lost 7% and ING 8%. Bringing together the great values ​​of the Old Continent, the European Stoxx 600 left 2.1%.

The declines are not exclusive to Ibex, as the rest of the major European markets have undergone a similar evolution. Towards the middle of the session, the German DAX dropped 3.04%, the French CAC 40 dropped 3.53% and the Italian FTSE MIB dropped 3.70%.. Thus, Euro Stoxx 50 depreciated by 3.35% and British FTSE 100 by 2.45%.

The main problem for Credit Suisse, whose shares are now down 20% on the Zurich Stock Exchange, is hitting an all-time low on a day when the company’s main shareholder, the Saudi National Bank, refused to expand its presence. Capital city. “Swiss regulation Increases the requirements for a shareholder exceeding 10% of a company’s capital. “The Saudis already own 9.8%, they have little room to expand their holdings without exceeding 10%,” says Darío García, an analyst at XTB, noting that numerous scandals by the side were the source of the leak. This bank is another major Swiss bank. Customers it has lost in favor of UBS.

The Swiss bank was involved in a corporate espionage case in 2019. He was fined in the UK and the US last year for a bond scandal in Mozambique. The funds were used to bribe government officials and pay commissions to a number of former Credit Suisse bankers and other intermediaries. “All these governance issues have pushed a lot of customers out of the bank. The market tries to isolate itself from a company with a bad reputation.“says analyst Dario García.

under two francs

Zurich bank shares are traded on the stock exchange for the first time under two Swiss francs (2.04 euros)When 15 years ago it was worth 16 euros.. The collapse that took place after a few very negative days for the bank, driven by the stock market crisis caused by the bankruptcy of the US bank SVB, coincides with the statements of Ammar al Khudairy, the head of the Saudi state bank. There will be no further capital injections by the entity. “We can’t because we’re going to exceed 10% of[shareholders]it’s a regulatory issue,” he told the agency. Bloomberg.

Experts point out that while it is understandable that certain moments of panic can occur after what happened with Silicon Valley Bank in the United States, in reality Credit Suisse’s problems do not have to become systemic, even though they create and provoke distrust. depositors taking refuge in safer financial institutions.

HE The Saudi bank bought a 10 percent stake in the capital increase it started last year. Credit Suisse, an investment in which the Middle East organization has invested 1,500 million Swiss francs (1,530 million euros). In 2022, the Zurich bank announced a loss of 7,293 million Swiss francs (about 7,400 million euros) in 2022, 4.5 times more than in 2021. Credit Suisse also suffered the latest loss, affected by its exposure to risk firms with financial problems such as Archegos or Greensill. Withdrawal of 123,200 million Swiss Francs (126,000 million Euros) of liquidity in the year.

under 9,000

HE Spanish selective transactions again below 9,000 points It rebounded after falling below that level on Monday for the first time since January 26. Although the Ibex 35 remained above 9,100 integers in the opening, they were on the border of 8,800 points towards the half-session.

Minutes into the half session, the selector was trading at a minimum of 8,778.9 points, representing a 4.15% drop from the previous close. Of the 35 companies listed in the selector, only Iberdrola made positive progress towards 12:00, an increase of 0.64%. Companies that lost the least value included Logista (-0.45%), Rovi (-0.50%), Acciona Energías Renovables (-0.63%) and Telefónica (-1.00%).

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In the commodity market, Brent’s barrel fell 1.42% to $76.31, while West Texas Intermediate was down 1.54% to trade at $70.21.. The yield on the secondary debt market of the Spanish 10-year bond was 3,366%, up from 3.484% when it closed on Tuesday. Thus, the risk premium offered to investors in Spanish bonds compared to German bonds increased by 3.4 points towards the middle of the session and rose to 109.8 basis points.

In the foreign exchange market, The euro lost 1.10% against the dollar., losing the $1.07 level against the euro. Thus, the market exchange rate reached $1.0616.