ZURICH/LONDON : Credit Suisse shares soared by over 35 per cent in premarket trading on Thursday, while the value of its bonds soared after the company secured a $54 billion lifeline from the Swiss National Bank to shore up liquidity and investor confidence.
The Swiss bank's announcement overnight helped stem heavy selling in financial markets in Asian trade on Thursday and European markets were heading for a bullish start to the day. "Following yesterday's extreme share price volatility, Swiss authorities offered their support. This is a strong and important signal. We hope the measures will calm down markets and break the negative spiral," Bank Vontobel equity strategist Andreas Venditti said.
"We see SNB liquidity support as indicated last night as not enough and believe CSG’s situation is about ongoing market confidence issues with its IB strategy and ongoing franchise erosion," JPMorgan said.