The Swiss National Bank announces its readiness to rescue Credit Suisse
Demand for Safe havens after banking sector turmoil
The Swiss National Bank announces its willingness to intervene
Oil prices are falling for the fourth session
ECB decided to raise the interest rates by 50 basis points as expected
The Swiss National Bank intervenes to solve the Credit Suisse crisis
The Swiss National Bank announced its readiness to intervene and pump liquidity into Credit Suisse to save it from collapse. It was the first bank that required central bank intervention to support it since the 2008 financial crisis.
It comes after the Credit Suisse share fell by more than 25% during trading on Wednesday, which led to the suspension of trading in the middle of the session.
In this context, Credit Suisse announced that it plans to borrow up to 50 billion Swiss francs, or the equivalent of $54 billion, from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.
After these decisions, Credit Suisse's stock recorded a record rise of more than 25% during today's trading.
Crude oil prices witnessed a limited decline during today's trading to record $66 per barrel, down by 2.01%.
It came after the sharp losses witnessed yesterday, as US oil closed below $70 levels for the first time since December 2021, before the start of the Russian-Ukrainian war.
The fears of the market about the economic recession increased, which has become increasingly likely to occur in the US, the world's largest consumer of crude oil.
The US oil inventories data was very disappointing, which put more pressure on oil's performance, as it recorded an increase of 1.6 million barrels this week.
ECB decided to raise the interest rates
At the same pace and for the third time in a row, the European Central Bank decided to raise interest rates in line with market expectations.
The data released a while ago indicated that the bank raised interest rates by 50 basis points, bringing the interest rate to 3.50%, in light of the European Central Bank's desire to control high inflation rates.
The bank indicated that it is closely monitoring the current market tensions and is ready to respond to maintain price stability and financial stability in Europe.
He added that the euro area enjoys flexibility in the banking sector, with capital and liquidity centers.
After that date, the EURUSD settled at 1.0579, up by 0.06%.