Australian shares dropped to their lowest in four months as a rescue deal for Credit Suisse did little to soothe concerns about contagion and a recession.
Australian shares dropped to their lowest in more than four months as a rescue deal for Credit Suisse and efforts by central banks to restore confidence failed to soothe investors’ concerns about contagion and a recession.P/ASX200 index dropped 1.4 per cent, or 96.3 points, to 6898.5, the lowest since early November. The main index has shaved off 0.6 per cent this year. The All Ordinaries also lost 1.4 per cent to 7085.10.
Ahead of a Federal Reserve meeting on Wednesday , markets were pricing about a 60 per cent chance of a 0.25 percentage point rate increase and a series of rate cuts from June. Fed chairman Jerome Powell could flag a policy pause, particularly if instability in the banking sector continues to flare up this week.Even reassurance by a top Reserve Bank of Australia official that the banking sector is in much stronger shape globally than it was a decade ago failed to convince investors.
Switzerland’s largest bank, UBS, agreed late on Sunday to buy the country’s No. 2 lender Credit Suisse for 3 billion Swiss francs Following the announcement, the US Federal Reserve, European Central Bank, and three other central banks pledged to enhance market liquidity and support other lenders. Mining heavyweights also retreated with BHP Group down 1 per cent to $42.96, Rio down 0.7 per cent to $113.99. Fortescue Metals dropped 2.9 per cent to $20.80.
Ramelius Resources retreated 2.96 per cent after it made a $131 million takeover bid for smaller gold rival Breaker Resources in an all-scrip off-market offer.an off-market buyout offer for much bigger rival Healius
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ASX LIVE: ASX to fall; UBS agrees to buy Credit SuisseAustralian shares to drop; UBS to buy Credit Suisse; central banks move to boost USD funding; ACL in all scrip bid for Healius; gold nears $US2000; bitcoin tops $US28,000. Follow updates here.
Read more »
UBS explores takeover of embattled Credit SuisseSwiss officials are pushing UBS Group to consider an acquisition of all or parts of Credit Suisse, after a rout in its smaller rival sent shock waves across the global financial system this week.
Read more »
These seven power players will decide the fate of Credit SuisseA politician, an economist, and a mathematician are in the select group that will determine the fate of what was once Switzerland’s pre-eminent financial institution.
Read more »
‘Go woke, go broke’: Credit Suisse is in ‘all sorts of trouble’Sky News host James Morrow says Credit Suisse is in “all sorts of trouble”, but it looks like the Swiss government will bail the bank out. “Go woke, go broke,” Mr Morrow said.
Read more »
Switzerland's largest bank in talks to save Credit SuisseCredit Suisse is in advanced talks with its larger Swiss rival UBS about a deal to salvage Switzerland's second-biggest bank, in a bid to reassure investors before the markets open next week.
Read more »
Why the Credit Suisse-UBS deal simply must get doneGlobal markets can’t afford for the takeover talks between UBS and stricken Swiss rival Credit Suisse to fail.
Read more »