The European stock exchanges are in free fall with the stoxx 600, the index that brings together the main listed companies, down by 2.7%.
The sell-off is being fueled by Credit Suisse's stock market crash
after major shareholder Saudi National Bank ruled out the possibility of providing financial support in case of further liquidity calls.
In Zurich, the shares of the Swiss bank drop 28% to 1.59 francs, an all-time low.
The events of the Swiss bank hit the banking sector causing a drop of 6.2%.
Of the main stock exchanges, Paris loses 3.4%, Madrid (-3.7%), Frankfurt (-2.7%) and London (-2.3%).
Among the banks, Societe Generale and Bnp Paribas sell 10%.
The fall of Piazza Affari does not stop
with the Ftse Mib dragged to -4% by the banks.
Weighing are the fears related to Credit Suisse after Saudi shareholders said they were unwilling to inject new liquidity.
The spread between the BTP and the Bund widens again, breaking through 199 points with the 10-year yield falling to 4.11%.
Oil falls sharply in New York
, where prices lose 4.8% to 67.93 dollars a barrel with the intensification of risk aversion.
CREDIT SUISSE
Default Certificates Towards Thousand Points -
Credit Suisse's default insurance certificates (credit default swaps) are approaching the critical threshold of one thousand points, which indicates a serious threat to the Group's going concern.
In particular, the one-year certificates rose yesterday to 835.9 basis points, according to the Cmaq platform, on the all-time highs, and are worth 18 times the similar derivative securities of the rival Ubs and about 9 times those of Deutsche Bank.
Saudis rule out further financial support
- Credit Suisse's largest shareholder has ruled out providing further assistance to the Swiss bank due to regulatory issues.
This was reported by Bloomberg citing an interview with the president of the Saudi National Bank, Ammar Al Khudairy.
The answer "is absolutely not, for many reasons. Some of these are of a regulatory and statutory nature", highlights Al Khudairy in an interview with Bloomberg TV, answering a question whether the bank is willing to support Credit Suisse in the event of a further liquidity request.
Saudi National Bank, which is 37% owned by the Saudi sovereign wealth fund, became Credit Suisse's largest shareholder late last year after buying a 9.9% stake in the Swiss lender.
What is happening to US banks
