European markets up after Credit Suisse takes loan from Swiss Central Bank

London, March 16 (IANS) Europe’s main markets have opened higher after moves from the Swiss Central Bank reassured investors over the financial health of Credit Suisse, the media reported.

In the opening minutes of trade, the UK’s FTSE 100 was up more than 1 per cent and the French CAC 40 was up 1.5 per cent, CNN reported.

Switzerland’s second largest bank has agreed a $53 billion loan from the Swiss Central Bank, saying it was a “decisive action to pre-emptively strengthen its liquidity.”

Shares in Credit Suisse have surged in the opening minutes of trading after it agreed a $53 billion loan from the Swiss Central Bank, CNN reported.

Switzerland’s second largest bank was up more than 30 per cent in early trade.

On Wednesday the bank plunged more than 24 per cent to a record low after its biggest shareholder said it had no plans to give any more funds to Credit Suisse.

Overnight the Swiss Central Bank and the Swiss regulator said they were ready to provide financial support to Credit Suisse, and the bank took up the offer, saying the loan was a “decisive action to pre-emptively strengthen its liquidity.”

Some analysts are calling China a “safe harbor.” In Shanghai, the nation’s biggest state-owned lenders all rallied. Bank of China was up 2.7 per cent. Agricultural Bank of China and ICBC both gained 1.6 per cent. China Construction Bank and Bank of Communications added 1.3 per cent and 0.6 per cent, respectively, CNN reported.

–IANS

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