News
Latest News
news bulletin
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Other News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Beirut
26
o
Bekaa
19
o
Keserwan
26
o
Metn
26
o
Mount Lebanon
22
o
North
26
o
South
22
o
Live
Video
Audio
Schedule
shows
العربية
watching now
Al Ikhwa
SUBSCRIBE
Home
Notification
Live
Video
Audio
shows
Beirut
26
o
Bekaa
19
o
Keserwan
26
o
Metn
26
o
Mount Lebanon
22
o
North
26
o
South
22
o
News
Programs
The News
Breaking Headlines
Israel-Gaza War Updates
Variety and Tech
Sports News
Middle East News
World News
Lebanon News
Press Highlights
Lebanon Economy
News Bulletin Reports
Programs
Series
Movies
Documentaries
Variety
Comedy
Talk Show
News Bulletin
Sports
Breaking News
Latest News
Highlighted News
Most Read
Videos
العربية
Watch the latest programs and the latest developments on your favorite screen
Shows
Join millions of followers
Who We Are
Contact Us
Advertise With Us
Careers
Channel frequencies
Privacy Policy
Terms and Conditions
Shares rise after Credit Suisse deal, but bank 'whack-a-mole' not over
World
21-03-2023 | 09:26
High views
Share
Share
5
min
Shares rise after Credit Suisse deal, but bank 'whack-a-mole' not over
Global shares rose on Tuesday, after the rescue of Credit Suisse arrested a rout in bank stocks, but signs of stress in the financial system are making investors wonder if another lender may deliver a nasty surprise, and how central banks might respond.
The Federal Reserve begins a two-day meeting later in the day and after a wild few sessions, US interest rate futures pricing implies that a peak in rates is either imminent or has already been reached.
Many investors had thought concerns about the stability of the banking sector were a thing of the past after the 2008 crisis. But the collapse of a number of US regional lenders, plus the eleventh-hour rescue of Credit Suisse, are forcing central bankers to prioritize fighting inflation alongside keeping money flowing through the financial system.
The jury is out on whether the Bank of England will hold fire when it meets this week, and the picture isn't much clearer for the European Central Bank, which raised rates last week, but left traders without much idea of what to expect next.
"It seems the penny is dropping, most central banks hiked interest rates too late and then raised rates too fast. And now the world is reeling with a banking crisis," Saxo Bank strategist Jessica Amir said.
European banking stocks, which are heading for their biggest one-month slide in three years, rose by almost 4% on Tuesday, helping lift the regional STOXX 600 index (.STOXX), while other measures of investor risk aversion subsided.
The Swiss government-backed takeover of Credit Suisse by UBS has helped soothe concerns over European financial stability.
But the wipeout of some Credit Suisse bondholders has sent shockwaves through bank debt markets, while the speed with which trouble spread from regional US banks to humble a big systemic bank in Europe has rattled markets.
"While the last global financial crisis played out over 18 months, today's crisis is only 10 days old and has already led to the collapse of some US regional banks and the arranged marriage of UBS and Credit Suisse at 0.06x book (value)," said bank analyst Jonathan Mott at Barrenjoey in Sydney.
"While global regulators are acting with pace, this appears to be a game of 'whack-a-mole.'"
San Francisco lender First Republic (FRC.N) is emerging as the next pressure point. Its share price halved on Monday on worries that $30 billion in deposits placed last week by bigger banks would not be enough to shore up its stability.
US officials are looking at ways to temporarily expand Federal Deposit Insurance Corp coverage to all deposits, Bloomberg News reported on Monday.
With so much tension in markets right now, gold has shot up to around $2,000 an ounce this week for the first time in year.
The dust is also yet to settle on the write-down of Credit Suisse's "additional tier 1" debt - part of its capital buffers - to zero.
It set off frantic selling of similar debt because holders were surprised that the long-standing practice of paying creditors before shareholders was not fully followed.
That somewhat abated after regulators in Europe and Britain stepped in to reassure investors that it would not set a precedent, and prices stabilized on Tuesday.
With the focus squarely on the outlook for monetary policy, the dollar held mostly steady against a basket of currencies.
Fed funds futures imply about a 1-in-4 chance of the Fed pausing on Wednesday, according to CME's FedWatch tool, while markets are divided evenly on the prospect of a hike in Britain.
"The banking sector's near-death experience over the last two weeks is likely to make Fed officials more measured in their stance on the pace of hikes," said Standard Chartered's head of G10 FX research, Steve Englander.
In foreign exchange, the dollar rose 0.7% against the yen to 132.17 and lost out to the euro, which rose 0.2% to $1.0748.
Gold meanwhile hit a one-year high of $2,009 an ounce on Monday, before easing 0.5% to $1,970 an ounce on Tuesday.
Reuters
Shares
Credit Suisse
Deal
Bank
Stocks
Investors
Federal Reserve
US
Subscribe to our VOD
SUBSCRIBE
Our visitors readings
d-none hideMe
0
Lebanon News
2025-04-09
Lebanon's Energy Minister says launching emergency plan to tackle water shortages during summer
Lebanon News
2025-04-09
Lebanon's Energy Minister says launching emergency plan to tackle water shortages during summer
0
World News
2025-04-25
Pakistan Senate rejects Indian 'attempts to link Pakistan' to Kashmir attack
World News
2025-04-25
Pakistan Senate rejects Indian 'attempts to link Pakistan' to Kashmir attack
0
News Bulletin Reports
13:00
Lebanon's Grand Mufti visits Damascus in symbolic shift: Inside Derian's Syria meetings
News Bulletin Reports
13:00
Lebanon's Grand Mufti visits Damascus in symbolic shift: Inside Derian's Syria meetings
0
World News
2025-04-29
France says Russia behind 2017 Macron campaign hacking
World News
2025-04-29
France says Russia behind 2017 Macron campaign hacking
Videos
d-none hideMe
0
Lebanon News
2025-07-01
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
Lebanon News
2025-07-01
Massive fire erupts at unregulated dumpsite in Bchannine, Zgharta district
0
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
Lebanon News
2025-06-10
Clash between Lebanese Army and residents of Deir Qanoun Al Nahr results in injuries (Video)
0
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
Lebanon News
2025-06-04
Mexico dedicates garden around Lebanese Emigrant Statue in Beirut to mark 80 years of diplomatic ties
0
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
Lebanon News
2025-05-19
President Aoun to seek Egyptian support for Lebanese Army in detecting explosives and tunnels
0
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
Lebanon News
2025-05-15
LBCI Exclusive: US steps up pressure on Hezbollah, Morgan Ortagus details sanctions and vision for Lebanon's future
0
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
Lebanon News
2025-05-11
Kuwait rolls out official welcome for Lebanon's President Aoun – video
0
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
Lebanon News
2025-05-11
Security incidents temporarily disrupt voting in several Akkar and Minieh-Danniyeh centers
0
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
News Bulletin Reports
2025-05-09
EU ambassador says 'we are not just donors, but genuine partners to Lebanon': Insights from exclusive LBCI interview
0
Lebanon News
2025-04-23
US envoy Morgan Ortagus hails Lebanese diaspora, says country stands at a crossroads
Lebanon News
2025-04-23
US envoy Morgan Ortagus hails Lebanese diaspora, says country stands at a crossroads
Most read
d-none hideMe
24 hours
7 days
Month
1
Lebanon News
06:18
US Envoy Tom Barrack hails 'historic moment' for Lebanon, urges unity and reform
Lebanon News
06:18
US Envoy Tom Barrack hails 'historic moment' for Lebanon, urges unity and reform
2
Lebanon News
11:50
Sources to LBCI: Lebanese Mufti, Syrian President dismiss Israeli claims over land swap deal
Lebanon News
11:50
Sources to LBCI: Lebanese Mufti, Syrian President dismiss Israeli claims over land swap deal
3
News Bulletin Reports
12:48
US envoy Tom Barrack’s message to Lebanon: One country, one people, one army
News Bulletin Reports
12:48
US envoy Tom Barrack’s message to Lebanon: One country, one people, one army
4
News Bulletin Reports
13:00
Lebanon's Grand Mufti visits Damascus in symbolic shift: Inside Derian's Syria meetings
News Bulletin Reports
13:00
Lebanon's Grand Mufti visits Damascus in symbolic shift: Inside Derian's Syria meetings
5
Lebanon News
02:22
PM Salam condemns armed displays in Beirut, orders legal action
Lebanon News
02:22
PM Salam condemns armed displays in Beirut, orders legal action
6
Lebanon News
12:28
Lebanon's President tells UK Foreign Secretary Israeli occupation hinders state authority
Lebanon News
12:28
Lebanon's President tells UK Foreign Secretary Israeli occupation hinders state authority
7
Lebanon News
07:09
LBCI sources: Saudi envoy departs Lebanon after pushing for arms control and reforms
Lebanon News
07:09
LBCI sources: Saudi envoy departs Lebanon after pushing for arms control and reforms
8
News Bulletin Reports
13:05
Israel, Hamas near agreement: Could a prisoner deal be the first step toward ending Gaza war?
News Bulletin Reports
13:05
Israel, Hamas near agreement: Could a prisoner deal be the first step toward ending Gaza war?
Download now the LBCI mobile app
To see the latest news, the latest daily programs in Lebanon and the world
Google Play
App Store
We use
cookies
We use
cookies
to make
your experience on this
website better.
Accept
Learn More