Banks stocks bounce back

Global banking stocks took a dive yesterday, led by Credit Suisse after the head of its biggest lender Saudi National Bank said in an interview on Bloomberg TV that it wouldn't offer more financial support. Banks tumbled 5.6% in the UK, leading the FTSE 100 down 3.8%.

Today, Credit Suisse announced it will borrow up to CHF50 billion from the Swiss National Bank to strengthen its liquidity, sparking a recovery in bank shares. The FTSE 100 was up 0.6% this morning and British banks rose 2.1%.

Meanwhile, Rentokil rose 6.6% after the pest control services provider saw its full-year adjusted profit soar 27%.

 

Things to read today:

Credit Suisse under siege (Financial Times)

European regulators criticise US ‘incompetence’ over Silicon Valley Bank collapse (Financial Times)

Why Top Washington Officials Agreed to a Bank Rescue (WSJ)