The backing of the Swiss central bank (SNB) for Credit Suisse (CS), which is struggling against a crisis of confidence, provided relief on the German stock market on Thursday. The Dax rose by 1.6 percent to 14,982 points a few hours before the interest rate decision of the European Central Bank (ECB) after losing more than three percent on Wednesday. Bank stocks went on a recovery course: Deutsche Bank rose by more than five percent, Commerzbank rose more than four percent.
Switzerland's second-largest bank wants to borrow up to CHF 50 billion from the central bank. It also wants to buy back its own debt. CS shares rose by around 30 percent in Zurich. The fear of further bank failures worldwide after the collapse of the US institutions Silicon Valley Bank (SVB) and Signature Bank is still there, warned stock market experts.
"The German stock market is now this famous falling knife that investors should never reach into, according to stock market wisdom," said Jochen Stanzl, chief market analyst at broker CMC Markets. "You can see that the problems of the banks stem from steeply rising interest rates, but the simple-sounding solution of falling interest rates is not one because of high inflation."
Investors will therefore take a close look at the ECB's signals. Expectations of a large interest rate hike by the ECB of 50 basis points have fallen significantly in the wake of the stock market turbulence on the money markets. The recent bank distress had opened the door for an increase of only 25 basis points again, said portfolio manager Thomas Altmann of asset manager QC Partners.