- The tumult in global financial markets subsided Thursday after regulators provided a lifeline to Credit Suisse, but traces of unrest remained as volatility gauges remained elevated and overnight gains in US futures in the run-up to the European Central Bank's rate decision.
- When the ailing Swiss lender prepared to borrow up to 50 billion francs ($54 billion) from the SNB liquidity facility, European equities moved higher, with Credit Suisse rallying the most in history at the outset, propelling a gauge of bank stocks to a rise of more than 1%. Stock futures in the United States were slightly changed. Regional banks in the S&P 500 index held on to their gains, but are still down for the week. The CBoe Volatility Index increased to 27, exceeding its long-term average of 20.
- Treasuries fell in early trading, bringing the 2-Year yield back to 4% following recent exceptionally strong drops. Bond yields fell across Europe, with the German 10-Year yield rising 15 basis points. The dollar index declined. The Swiss franc recovered following a steep drop on Wednesday. The euro recovered from a two-month low ahead of the ECB's projected interest rate hike later Thursday, with more investors now expecting a 25 basis point increase rather than double that.
- Swiss cabinet to hold extraordinary meeting to talk about Credit Suisse - media reports.
- Credit Suisse default swaps drop after SNB’s liquidity pledge.
- Credit Suisse loses equities heads in Asia as exodus worsens.
- Credit Suisse CDS tighten as funding deal calms investors.
-JPMorgan approximately estimates slower loan growth by mid-size banks could deduct a half to a full percentage-point off the level of US GDP over the next year or two.
