After the acquisition of Credit Suisse by UBS, European stock exchanges are expected to fall. The Eurostoxx 50 opens at 4,064.99 points (-1.26%), the CAC 40 at 6,925.40 points (-1.43%), the DAX 40 at 14,768.20 points (-1.33%), the FTSE 100 at 7,335.40 points (-1.01%), the SMI at 10,613.55 points (-0.98%), the AEX at 722.43 points (-0,01%), the SMI at 10,613.55 points (-0.98%), the AEX at 722.43 points (-0,01%) ,64%), the BEL 20 at 3,602.80 points (-1.36%), the IBEX 35 at 8,719.30 points (-1.92%), the DJIA at 31,861.98 points (-1.19%), the Nasdaq at 11,630.51 points (-0.74%), the S&P 500 at 3,916.64 points (-1.10%) and the Nikkei 225 at 26,945.64 points 67 points (-1.42%).

In terms of exchange rates, the change from the close mentions that in New York, EUR/USD at 1.0677 (+0.07%), EUR/JPY at 140.91 (+0.19%), and USD/JPY at 131.98 (+0.11).

After the announcement on Sunday evening of the merger between the Swiss institutions UBS and Credit Suisse, the banking sector will remain under scrutiny on Monday. For their part, Bénéteau, Mersen and Voltalia join the SBF120 index so McPhy leaves. In France, the political situation will be monitored. For their part, the deputies will vote on two motions of no confidence against the government of Elisabeth Borne and despite the opposition that the pension reform arouses, it could be definitively adopted.

In Europe, European equity markets are preparing for a hectic start to the trading day on Monday. Investors fear an international banking crisis after the historic deal reached on Sunday to save Credit Suisse.

The FTSE 100 gave up 68 points, or 0.9%, while the CAC 40 futures contract lost 76 points, or 1.1% at 7:35am. According to data from the IG broker, the DAX 40 fell by 147 points, or 1%.

Asian markets are losing ground on Monday in response to all these events. At the end of trading, the Hang Seng dropped 3.2% in Hong Kong; the Shanghai Composite lost 0.5%; then the Nikkei Index closed down 1.4% in Tokyo.

This morning, US Treasury bond yields continued to fall amid concerns about the banking sector, which outweighed expectations of a rate hike by the Fed. Indeed, the Federal Reserve must “de-invert” the interest rate curve if it wants to remedy the problems in the banking system, according to Navellier & Associates. According to the banking intermediary, “a large part of these difficulties is due to the Fed's measures. An inversion of the yield curve is holding back credit and economic activity.” For them, the reversal of the yield curve “is not as serious as it has been in the past, but the Fed must intervene through its 'open market' operations to lower yields.”

Capital Economics believes that “the problems of American banks may have only just begun, but we doubt that a global financial crisis 2.0 is on the horizon.” According to him, “it is possible that other problems will appear in other commercial banks in the United States. However, the sector as a whole does not have a worrisome ratio of unsecured deposits or unrealized losses on securities 'held to mature' that exceed equity. And if other skeletons come out of the closet, they are more likely to involve banks that are relatively unregulated because they present fewer risks to the economy.”

The euro fell slightly against the dollar this morning, while regulators increased their efforts to restore confidence in the global banking system by orchestrating the purchase of Credit Suisse by UBA. For ANZ Bank, it is difficult to imagine that financial instability and bank difficulties will disappear anytime soon and investors should therefore expect volatility to persist. According to Capital Economics, the dollar is losing steam, despite the deterioration of risk appetite, and “interest rate expectations, and therefore bond yields, have fallen much more in the United States than in most other economies.” The financial intermediary believes that “this evolution of interest rate differentials has more than offset the relatively limited impact (so far) of the uncertainty surrounding the banking sector on overall risk sentiment.”

While concerns about the banking sector in the United States and Europe are reviving fears of a recession, crude oil prices fell this morning. According to Commerzbank, “oil prices are particularly affected by the current market turmoil.” According to the Australian bank CBA, “the risk aversion signal has a mixed impact on mining and energy commodity prices.” For her, the fall in benchmark oil contracts is one of the most significant changes.

While the April contract for light sweet crude (WTI) traded on Nymex lost $1.30, or 2%, to $65.44 per barrel, the May contract for North Sea Brent fell by $1.36, or 1.9%, to $71.61 per barrel at 7:25am.