After a start in deep red, European lists seem capable of digesting, or at least containing, the effect Credit Suisse.
Red start, but then recovery
In Milan, the main index, down by an abundant 1% in the early stages, starts to zero the losses around 11. The charge is sounded by the utilities with increases between 2 and 4% on the day of the arrival of the regasification terminal in the waters of Piombino: he leads the charge Terna, followed by Snam, Italgas and A2A. The rebound is made possible by the fall in the yield on government bonds with relative savings for the sector. The BTP, in line with the German Bund and US Treasuries, drops below 4 per tooth while the spread drops below 4%. The banking crisis (and consequent injection of liquidity) is bound to tick the action of the hawks of central banks.
Stock exchanges: attention remains focused on banks
In fact, the spotlights of the markets remain focused on the performance of the banking sector, which has been under tension since this morning's trade in Asia.
The actions of Swiss credit destined to end up in the belly of the historic competitor Ubs for 3 billion francs, they are down by about 70%, in line with the price established over the weekend. The reimbursement fixed for the old shareholders, around 3 billion francs (against 42 billion at book value), is of little use. The shares of also lose ground ubs 9% despite the favorable conditions of the operation which, all inclusive, provides for an effort between guarantees and tax rebates, entails a commitment of over 200 billion for the Confederation's budget, or a quarter of the Crusader budget. Given the proportions, it is as if Italy pledged 500 billion euros to save a bank. But the money industry is so vital for the country of gnomes that it imposes this sacrifice which, in any case, the country can afford.
The effect of the crisis does not stop there. The cost of Credit Suisse debt insurance fell compared to Friday (to 386 from 985 points) but the costs rose for other systemic banks that make extensive use of subordinated bonds. Deutsche Bank loses 2,9%. The market now awaits the words of Christine Lagarde who will speak in the afternoon: he expects a reassuring message on the quality of Tier 1 of the big banks.
Italian banks: they hold up better than foreign ones
Italian banks are doing better. Unicredit it loses 2% after the -6% reached at the beginning of the session. Intesa Sanpaolo drops by 1%%. Worse BPER down 2,4%, Bpr Bank to -2.3%. Worst of all MPS to -4%, the institute that in the past made use of the Co.Co. bond. Equita writes that "on the one hand, the operation on Credit Suisse makes it possible to contain the risks of contagion and its repercussions, but on the other, we believe that the terms of the transaction may have the effect of increasing the cost of capital/risk premium for the banks". Asset management also suffers Finecobank down by 1,5%.
Finally, the new decline in the price of Brent, to a 15-month low, on fears that risks in the banking sector could lead to a recession and a drop in oil demand: Saipem loses 2,1%, Eni and Tenaris -0,7%.
