European stocks rise on turbulent day as markets weigh Credit Suisse rescue

To the european stocks reversed strong initial losses and rose on Monday, under the impact of the recovery of shares in the banking sector from the lowest levels in three months caused by the agreement of the UBS to buy the Credit Suisse for a fraction of its market value.

The pan-European STOXX 600 index closed up 0.98% at 440.60 points after falling nearly 2% earlier.

Banking shares rose 1.3% after the takeover of Credit Suisse by the state-backed UBS Group appeared to end a source of concern for the global banking sector.

Credit Suisse shares fell 55.7% after rival UBS said it would pay 3 billion Swiss francs ($3.23 billion) for the 167-year-old bank and assume up to $5.4 billion in losses.

UBS shares rose 1.3% after falling as much as 16% in a volatile session.

The mining sector led the sectoral gains on Monday, up 2.8%, following firm copper prices with the weakening of the dollar and signs of improvement in coal demand. Chinaone of the main consumers of the metal.

Meanwhile, the President of European Central Bank (ECB), Christine Lagardesaid that the financial market turmoil will not impede the ECB’s fight against inflation, as there are separate tools to combat the two problems.

The STOXX 600, which has already racked up a 10% gain for the year, is up just 3.7% so far this year after the collapse of Silicon Valley Bank and Signature Bank and the troubles at Credit Suisse fueled health concerns. of the global banking system.

In London, the Financial Times index advanced 0.93%, to 7,403.85 points.

In Frankfurt, the DAX index rose 1.12% to 14,933.38 points.

In Paris, the CAC-40 index gained 1.27%, at 7,013.14 points.

In Milan, the Ftse/Mib index appreciated by 1.59%, at 25,899.57 points.

In Madrid, the Ibex-35 index registered an increase of 1.31%, to 8,833.10 points.

In Lisbon, the PSI20 index appreciated by 0.79%, to 5,769.33 points.