European regulators continue to try to calm the markets. The European Central Bank and the European Banking Authority ensure that the financial system has sufficient liquidity and that the banking sector is resilient in a joint statement that responds to a red dawn in European markets.
It is the first test after the announcement that the largest Swiss bank, UBS, will take the second largest, Credit Suisse. João Queiroz, responsible for negotiations at Banco Carregosa, believes that it will take a few more days to assess the impact of the merger.
“The market needs some time to digest, for the dynamics of the bond market to return, once again, to having the same framework of rationality in market operators, mainly investors and bondholders, so that they feel more comfortable for this evolution. It will take time, a few more days, to see how Credit Suisse shareholders and bondholders will adapt to this framework, be able to do their math and see if it makes sense to evolve into court situations or not”, he explained to TSF John Queiroz.
European stock markets started to lose with the announcement of the purchase of Credit Suisse, but the effects did not end there. The price of oil and natural gas has dropped and there has been a new rise in gold, which is at US$2,000 per ounce, almost reaching the all-time high of 2020.
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