Credit Suisse shares surge, send positive signals to European markets as Swiss National Bank promises lifeline

Credit Suisse shares began Thursday's session with a surge as high as 30 per cent, recouping some of the losses of the previous day, after the embattled investment lender secured assurance oaf up to 50 billion Swiss francs ($54 billion) in assistance from the Swiss National Bank. The news came as a respite for the European market, which opened with a quick recovery of 2–2.5 per cent. 

Asian markets and the Indian market also looked upbeat about the Swiss development, as both showed partial recovery at noon. 

Nifty recovered a bit and was trying to come back to 17,000 points, while NIFTY Bank was 300 points down and was hovering around 39,000 points at 2 PM. 

ALSO READ: Credit Suisse' Neelkanth Mishra quits, set to join Axis Bank

According to a Zee Business analyst, though, European shares had a good opening in the morning, it is yet to be seen whether they will maintain this upbeat mood or go down. He said that a lot would depend on the performance of Credit Suisse's shares later in the day.

It is yet to be seen if investors maintain faith that Credit Suisse won't collapse after the Swiss National Bank's support, and also how Credit Suisse's own customers react to the development in the long run.

What's ailing Credit Suisse?

Credit Suisse has been embroiled in scandals and controversies for a long time, but it hit a roadblock on Tuesday after it released its 2022 annual report.

The bank said that it had identified "material weaknesses" in its controls over financial reporting and had not yet stemmed customer outflows.

The second-biggest bank in Switzerland revealed that its outflows in the fourth quarter jumped to to more than 110 billion Swiss francs ($120 billion).

Investors started losing confidence in the bank's share as by the next day, Wednesday, March 15, the share had slid as much as 17 percent to hit a new low.

Ammar Al Khudairy, chairman of the Saudi National Bank, which is Credit Suisse's largest lender, said on Wednesday that it could no longer provide it with financial assistance.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.