The stock markets partially reassured after the takeover of Credit Suisse by UBS

(Paris) The emergency measures of the weekend to allay fears over Credit Suisse and the tension on the banking system allow European stock markets to rise on Monday, but the pressure persists on the banks.

After an opening in the red and high volatility, the European indices recovered in Paris (0.95%), London (0.47%), Milan (0.73%), Frankfurt (0.75%) around 7 a.m. 25 (Eastern time), after a dark week in the banking sector which weighed down all the markets.

The financial sector is still suffering: European banks are down 1.57% in the European Eurostoxx 600 index, with in particular -4.29% for BNP Paribas, -5.13% for ING and -2.34% for Deutsche Bank .

Credit Suisse’s stock plummeted nearly 60%, and was worth less than rival UBS’s takeover bid, which was also down 3.5% around 6:55 a.m. EST.

“Investors are still struggling to assess the situation in financial stocks” and remain suspended from the US Federal Reserve meeting on Tuesday and Wednesday, comments Pierre Veyret, analyst at ActivTrades.

As a sign of the persistent feverishness, investors are falling back on all values ​​considered to be safe havens, in particular gold and the sovereign debt market.

On Wall Street, futures pointed to a cautious open, with the S index expected to gain 0.13%

After intense negotiations this weekend, the first Swiss banking group UBS agreed on Sunday to buy for a pittance its ailing rival Credit Suisse, with important guarantees from the government of Bern and cash from the SNB, the country’s central bank.

The amount of the takeover of Credit Suisse, which has been going through an intense phase of turbulence since the beginning of last week, amounts to 3 billion Swiss francs (3.02 billion euros) for a bank which was worth almost triple Friday at the close of trading.

To calm banking stress, official statements have been made: “the European banking sector is resilient, with solid levels of capital and liquidity”, the European Central Bank said on Monday in a joint statement with the European Banking Resolution Mechanism ( SRB) and the European Banking Authority (EBA).

German banking supervisor Bafin reiterated that the national financial system is “stable and robust”.

On Sunday, the American (Fed), European, Swiss, English, Canadian and Japanese central banks announced that they were carrying out coordinated action to improve access to liquidity, an exceptional measure to restore confidence in the financial system, shaken for ten days by the bankruptcy of the American institution Silicon Valley Bank (SVB).

But “the more policymakers act, the more bad news investors expect, which creates a horribly negative feedback loop, as if investors are asking themselves, ‘what do they know that we don’t know? “,” said Stephen Innes of SPI Asset Management.

In the bond market, short-term yields continued to fall sharply, signaling that investors believe the Fed will not raise rates Wednesday at its next meeting.

“If it continues to raise rates, it strengthens its anti-inflationary credibility, but risks increasing financial tensions”, stresses Xavier Chapard at LBPAM.

Propelled by worsening concerns over the banking sector, the price of gold rose above the symbolic threshold of $2,000 an ounce on Monday morning. By 6:30 a.m. EST, the yellow metal was down 0.16% at $1,985.

The euro climbed 0.14% against the dollar, to 1.0685 to the dollar.

On the oil market, the barrel of American WTI slipped 2.73% to 64.92 dollars around 6:30 a.m. (Eastern time) and the barrel of Brent from the North Sea yielded 2.45% to 71 $.21.

European natural gas slipped below 40 euros per megawatt hour (MWh) on Monday, its lowest since July 2021, held back by mild weather and high storage levels.