The Swiss National Bank supports Credit Suisse and the ECB raises rates on schedule. Here’s what investors need to know today.
1. Credit Suisse shares jump on support from the Swiss central bank
Credit Suisse (CS) shares jumped 20% after the bank said it would borrow up to $54 billion from the Swiss National Bank to head off liquidity concerns. They fell 24% yesterday after the Saudi National Bank said it would not offer any additional financing for Credit Suisse.
2. The ECB raises rates on schedule
The ECB decided to raise interest rates by 50 basis points to cool inflation eurozonedespite the recent turmoil in the banking sector.
3. The largest national banks receive new deposits after the collapse of SVB
The nation’s biggest banks are expected to receive billions of dollars in new deposits as customers flee Silicon Valley Bank for big banks. Bank of America reportedly received more than $15 billion in new deposits in a matter of days as SVB failed. Other banks such as JPMorgan Chase, Citigroup and Wells Fargo also reportedly received billions in new deposits, although the numbers have not yet been released.
4. Adobe shares rise after reporting 9% jump in revenue
Shares of Adobe (ADBE) are up nearly 6% in premarket trading after its earnings beat analysts’ estimates. The software company also upgraded its full-year outlook. For the first fiscal quarter, Adobe reported revenue of $4.66 billion, up 9% from a year ago. Adobe said the strong results reflected demand for digital content creation tools despite a weaker economy.
5. The case starts to rise faster than the projection
The Department of Commerce published its message about new housing construction for February, display housing begins rose 9.8% last month at a seasonally adjusted annual pace of 1.45 million units, ahead of estimates of 1.31 million. Building permits, a sign of future housing activity, also rose more than expected to 1.52 million units.
