Cautious Markets After Credit Suisse Takeover

Following a dramatic week, it was announced last night that Credit Suisse would be acquired by UBS for a total consideration of CHF3bn. While Credit Suisse remained solvent, the bank had seen significant client outflows which led to liquidity lines being extended from the Swiss National Bank on Wednesday.

UBS Buys Credit Suisse to End Stress

UBS bought Credit Suisse (CS) in a government-brokered deal for 0.76 cents of franc per share, or CHF3bn in total. The Swiss National Bank (SBN) offered UBS $100 billion in liquidity to make sure that the takeover would go smoothly, and Swiss government offered 9 billion francs guarantee on CS losses. The deal triggered a complete write-down of all CS’s additional tier 1 bonds.

Dollar Again Failed to Capitalize on Risk-off Environment

The dollar again failed to capitalize on the risk-off environment; a reminder that the issues for the likes of First Republic Bank in the US aren’t over yet either? Narrowing yield differentials supported EUR/USD from the low 1.06 to 1.067.

Euro Edges Lower, ECB and Other Central Banks Take Joint Action

It was anything but a quiet Sunday, as the Swiss government engineered a bank merger, with UBS agreeing to buy Credit Suisse, the second largest bank in Switzerland. At the same time, six major central banks, including the Federal Reserve and the ECB, announced a joint move to ensure liquidity in the financial system.

Bitcoin in All its Glory. Where's the Stop?

Last week proved to be the best week for bitcoin in the last five years, since February 2018. BTC rose sharply along with gold as market participants began to see it as a safe haven for capital amid problems with banks.

Swiss Franc in Calm Waters, But Is There a Storm Ahead?

USD/CHF is trading quietly on Monday, after a tumultuous week. In the European session, USD/CHF is trading at 0.9276, up 0.15%.Credit Suisse takeover, central banks take action

Has the Long-Awaited Recession Arrived?

Stock markets are falling, oil dropped to prices not seen since 2021 and gold is trending higher. The general symptoms that would be expected as a recession developed. The collapse of three banks in the US, and Credit Suisse not only once again dropping to record lows, but having the largest drop in its stock price in history. It's not surprising at all that the market is having jitters. The question is whether this is a passing issue, or can we expect the situation to get worse.

Dollar Wasn't Really Able to Profit from the Early European Risk-off

The dollar wasn’t really able to profit from the early European risk-off. It went no further than EUR/USD 1.064 before a reversal together with the general mood kicked in. The pair is currently changing hands in the 1.072 area, testing the 50dMA.

RBA Board opens the door to a pause in April

The Minutes of the Reserve Bank Board meeting on March 7 highlight that unlike recent meetings when several policy options were considered the March meeting only considered the case for 25 basis point increase – the resulting decision.

Equities Gain, Bonds Confused, as Fed Meets

The Federal Reserve (Fed) begins its two-day policy meeting today in the middle of a storm. If the European Central Bank (ECB) decision serves as a cheat sheet, the Fed could hike by 25bp and say that it has tools to inject liquidity in the system to contain crisis.