The Daily Chase: UBS to buy Credit Suisse for US$3.2B; Market volatility continues

The Credit Suisse crisis finally has something of a conclusion after UBS Group agreed over the weekend to buy its longtime Swiss rival for US$3.2 billion after a crisis of confidence rocked Credit Suisse.

…BUT THE SALE FAILS TO SOOTHE MARKET JITTERS

A lot to unpack here, but it doesn’t seem like everything is coming up roses on the markets in the wake of the deal. European markets were markedly lower in earlier trading, though have since recovered much of those losses, while U.S. futures have been oscillating to start the week. It appears investors are trying to figure out just what to make of the deal, in terms of balancing some stability against those broader concerns about what it says about the structural integrity of the financial system. Further to that, safe haven assets have been rallying – U.S. treasuries are up across the board and gold’s topped US$2,000 an ounce for the first time in a year. On the flip side to that is the fears that this turmoil could stymie economic growth, which has sent U.S. West Texas Intermediate prices to US$65 a barrel amid a somewhat risk-off trade.

CENTRAL BANKERS COORDINATE ON LIQUIDITY MEASURES