Oil prices fell to their lowest level in more than a year. This is the market reaction to the problems of the Swiss bank Credit Suisse. Shares of Credit Suisse fell more than 30 percent on Wednesday. to an all-time low.
On Wednesday, Credit Suisse shares fell more than 30 percent to CHF 1.55 a share, an all-time low. Since the beginning of the year, sales of the second largest Swiss bank have exceeded 46 percent.
The National Bank of Saudi Arabia will not increase its stake in Credit Suisse
Credit Suisse CEO Ulrich Kerner assured on Tuesday that the bank’s financial position is solid, pointing to a so-called liquidity coverage ratio it can use to meet its obligations at around 150%.
But the problem is that additional information emerged on Wednesday from the CEO of Credit Suisse’s largest shareholder, the National Bank of Saudi Arabia, who told Bloomberg TV that he could not increase his stake in Credit Suisse due to regulatory restrictions. It was an answer to a question about possible further support of the bank, if necessary. The National Bank of Saudi Arabia owns 9.9 percent. shares.
Information about the problems of the largest bank in Switzerland led to the sale of shares of European banks, but their consequences are much wider. Faced with concerns about the future of Credit Suisse, investors are clearly retreating, which led to a 5% drop in oil prices.
Oil at its lowest level in a year
Thus, oil prices fell to their lowest level in more than a year. Earlier, oil prices rose after data showed China’s economic activity rebounded in the first two months of 2023 after easing Covid-19 policies. But worries about Credit Suisse offset the impact of China’s economic recovery on oil prices.
Source: Wprost
I am George Brown, author at Daily News Hack. I mostly cover economy news and I have been doing this for quite some time now. I have a lot of experience in this field and I’m always looking for new opportunities to learn more.
