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UBS and Credit Suisse shares fall on the stock market after rate hikes

The shares of UBS and Credit Suisse banks, in the center of the banking storm that Switzerland has experienced in the last week, closed today with losses of 4.33% and 3.61%, respectively, after the rise in interest rates attacked by the Federal Reserve of the United States, of 25 basic points, which the Swiss authorities responded with another of 50 points.

The titles of Credit Suisse, an entity that in the coming months will be absorbed by UBS after an agreement reached in this regard, were worth 0.80 francs (0.8 euros) at the close of the Zurich Stock Exchange today, 88% less than a year ago

UBS, which will become the undisputed number one Swiss bank once the operation is completed, left its shares at the end of today’s trading at 17.9 francs (18 euros). After a first sour reaction from investors who in particular it affected UBS, after the agreement was known, the titles of this financial institution have been recovered on a regular basis.

The Federal Reserve decided on Wednesday to raise rates by a quarter of a point, after the bankruptcy of two banks in recent weeks, the Silicon Valley Bank (SVB) and the SignatureBankwhose financial situation worsened due to the agency’s monetary policy, and the bailout of a third party, the First Republic Bank.

The panic crossed the Atlantic and almost finished with Credit Suisse, which had to be acquired by its competitor at the insistence of the government, since the crisis of confidence that it suffered was sinking its price in the market and its bankruptcy was feared.

Source: Elcomercio

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