European stocks waver as Credit Suisse shares soar
BNN Bloomberg
European stocks pared an early rally on Thursday and bonds fell as traders braced for a European Central Bank rate decision amid concerns about the outlook for economic growth, even as bank shares rebounded after Credit Suisse Group AG's lifeline.
The Stoxx Europe 600 index was about 0.2 per cent higher after yesterday's near-3 per cent plunge. A gauge of bank stocks climbed about 1 per cent, recovering some of yesterday's 6.9 per cent loss, with UBS Group AG rising more than four per cent. Credit Suisse shares soared as much as 40 per cent before paring the advance. The embattled Swiss lender has arranged to borrow as much as 50 billion francs (US$54 billion) from a Swiss National Bank liquidity facility and will offer to buy back up to three billion francs of dollar- and euro-denominated debt.
The Swiss franc strengthened on the news in volatile trade after a sharp selloff Wednesday. The euro recovered from a two-month low ahead of an expected interest rate increase from the ECB later Thursday, with more investors now positioning for a 25 basis point move after earlier expectations for double that.
Treasury 10-year yields edged higher following steep declines in the previous session. Bond across Europe declined, with the German 10-year yield up 15 basis points. An index of the dollar fell.
