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European financial markets declined at the start of trading, despite the purchase of the “Credit Suisse” bank


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European financial markets are witnessing a decline on Monday, despite the purchase of the “Credit Suisse” bank, a step that was welcomed by several European and American parties, given that it may prevent turmoil in the financial markets that were affected after the bankruptcy of “Silicon Valley Bank” in the United States. Despite UBS’s acquisition of Credit Suisse, several European stock exchanges such as London, Paris and Frankfurt recorded declines on Monday morning.

recorded highlights money markets The European Union declined at the start of the Monday trading sessions, despite the deal Buy Credit Suisse Bank Aiming to avoid a new crisis in The banking sector Global. On Sunday, Switzerland’s largest bank, UBS, took over its rival, Credit Suisse, which is facing a serious crisis, after arduous negotiations, while the government announced the provision of major guarantees in the hope of avoiding an acute crisis and restoring the “confidence” of investors around the world.

On Monday, the most prominent index on the London Stock Exchange fell by 1.1% to 7,258.31 points. In the euro zone, the Frankfurt Stock Exchange index fell 1.0% to 14,617.00 points, and the Paris Stock Exchange index decreased by 0.8% to 6,868.51.

BNP Paribas declined by 8% and Deutsche Bank fell by 5%. From the US Treasury to the European Central Bank, several parties were quick to welcome the move to buy UBS Bank in Switzerland on Sunday, its competitor, Credit Suisse, for fear of new turmoil in the markets, which were weakened by the bankruptcy of the Silicon Valley Bank in the United States.

However, the shares of the two banks declined on Monday, as Credit Suisse’s share collapsed by 63.70% from the price of UBS’ acquisition of it. Shares of “UPS” declined by 8.77% on the stock exchange.

The value of the deal is three billion Swiss francs (3.02 billion euros) payable in the form of shares, or 0.76 francs per share, after the value of Credit Suisse shares on Friday was 1.86 Swiss francs.

France 24 / AFP

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