The big banks ' shares on Friday morning, above average under strong pressure. The share certificates of the Credit Suisse and the UBS costs 9,82 respectively 9,79 francs. For the first time, have both papers at the same time for less than a ten note.
It is the fear of the consequences of the rapid spread of the Coronavirus, which has the markets remain in the grip and the rates are tumbling leaves. In the case of the banks, the low interest rates to come. Low yields also mean less revenue for the financial institutions.
trigger the "Race to the bottom" in interest rates was the unexpected and significant cut in interest rates by the US Central Bank, the Fed, by half a percentage point on Tuesday. And this should not be the end of it, on the market for more interest rate hikes are expected.
escape in safety
As a result, investors flee to safe havens, including the Swiss franc, Gold and us government bonds are. The yield on ten-year US government bonds had already been reached on Thursday with 0.81 percent, a new low value. The bonds of the Confederation are asked.
This makes the already below-the low interest rates and penal interest rates-suffering banks, the economic life is even harder, because falling yields mean more pressure on the margins.
Created: 06.03.2020, 09:56 PMUpdated Date: 06 March 2020, 09:04