European bond yields fall
European bond yields fell Monday as markets remained jittery amid the UBS takeover of Credit Suisse.
Germany’s benchmark 10-year bond yield was down just under 10 basis points, to 2.025%, at 11:00 a.m. local time.
Yields on U.K. 2-year and 10-year bonds were both down around 9 basis points, to 3.138% and 3.188%.
Bond yields move inversely with prices.
It comes after the U.S. Federal Reserve announced on Sunday it would co-ordinate with the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and Swiss National Bank to enhance the provision of liquidity through the standing U.S. dollar swap line arrangements.
Joost van Leenders, senior investment strategist at Van Lanschot Kempen, said in a note it was “very difficult to have a clear view of what’s happening in the banking sector” and financial markets feared something broader was at play.
European banking stocks slide
Bank stocks slid at the open Monday, with Credit Suisse and UBS driving the fall.
Banking stocks were down 2.75% by 9:17 a.m. London time, paring some losses.
Credit Suisse shares were down 58%, while UBS recovered slightly to trade 9% lower by 9:17 a.m. London time after the latter agreed to an emergency takeover of its embattled rival.
Other banks also lingered in the red, with ING Groep, Deutsche Bank and Barclays all down over 5%.
— Katrina Bishop
European stocks open lower
European stocks were lower in early trade as investors assessed a news-filled weekend that resulted in a UBS takeover of Credit Suisse.
The Stoxx 600 index was 1.4% lower at 8:30 a.m. London time, with losses across the major stock exchanges and in all sectors bar utilities.
Stoxx 600 index.
Credit Suisse down 62% in Julius Baer pre-market trade
Credit Suisse shares were down 61.95% in pre-market trade via private bank Julius Baer, Reuters reported at 8:14 a.m. CET, following news of the former lender’s takeover by UBS.
UBS Group shares lost 7.1%.
Credit Suisse has…
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