Investors Greet Emergency Credit Suisse Deal Warily

Stocks in Asia slipped and U.S. stock futures rose slightly after Swiss regulators struck a deal on Sunday to rescue the country’s embattled bank Credit Suisse from the brink of a disorderly bankruptcy that threatened to further roil global markets.

The takeover of Credit Suisse by UBS, the largest bank in Switzerland, was meant to calm the growing concern across markets about the health of the financial sector.

Stock futures on the SP 500, which give investors the ability to bet on the index before the start of trading, nudged higher. On Friday, the SP 500 slid 1.1 percent, its sharpest decline in a week.

In Asia on Monday, the Nikkei inched downward, trading about 1 percent lower at midday in Tokyo.

The $3.2 billion acquisition by UBS of Credit Suisse, Switzerland’s oldest bank, was announced on Sunday by the Swiss Financial Markets Supervisory Authority. The country’s central bank, the Swiss National Bank, will lend up to 100 billion Swiss francs to UBS to help it complete the takeover.

Article source: https://www.nytimes.com/2023/03/20/business/markets-today.html