Financial markets fell back into the red on Friday mid-session, following a short-lived respite on Thursday. This is the consequence of the relapse on the stock market of the weak banking links First Republic and Credit Suisse, despite the firewalls to prevent the situation from getting out of hand.
Relieved in the morning by the financial aid provided to these two banks and comforted by the assurances of the European Central Bank (ECB) for the euro zone, the indices were finally down, from Paris (-0.59%) to Milan (-0.27%) via Frankfurt (-0.39%) and London (-0.29%) around 12:20 GMT.
On Wall Street, futures were trending down 0.50% on the Dow Jones index, 0.52% on the S&P index and 0.11% on the Nasdaq, with strong technological coloring.
Support for First Republic in the United States
Eleven major US banks pledged Thursday to come to the rescue of First Republic, depositing $ 30 billion in this establishment to strengthen its liquidity and prevent the situation from escalating following the bankruptcies of Silicon Valley Bank, Signature Bank and Silvergate last week.
The effort has been hailed by the US Federal Reserve (Fed), the Treasury and two financial regulators, as investors are terrified of a possible risk of contagion to other banking institutions. Since March 10, these bank failures across the Atlantic have revived the specter of the 2008 financial crisis which had destabilized the global economy.
Bank loans of 165 billion from the Fed
In a sign of financial stress, US banks have since borrowed a total of $164.8 billion from two US Federal Reserve (Fed) guarantee facilities in recent days, according to financial news agency Bloomberg. .
But the action of First Republic, the 14th American bank by the size of assets, lost more than 13% in electronic trading before the opening of Wall Street.
Credit Suisse shares still under pressure
The action of Credit Suisse also relapsed sharply on Friday at midday (by more than 11% around 1:15 p.m.) following recovering 19.15% the day before. It therefore failed to compensate for the worst fall in its history on Wednesday (by nearly 25%) paying the price for concerns regarding the banking system.
>> Lire: Credit Suisse shares end up 19% following SNB support
The Swiss number two in the sector, in difficulty, has received support from the SNB to strengthen its liquidity while the hypothesis of a takeover of the banking giant has resurfaced, according to analysts.
>> Lire: After the rescue by the SNB, the press awaits Credit Suisse at the turn
Another off-schedule meeting at the ECB
According to AFP, the European Central Bank (ECB) was to meet on Friday with its supervisory body for banks in the euro zone for an “exchange of views” on the banking sector following the turbulence of recent days.
This is the second time that this body has been convened this week for an “ad hoc” meeting, outside the usual calendar, given the rapid developments affecting the banking sector.
>> See also the 12:45 p.m. press meeting on the scenarios awaiting Credit Suisse:
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