European Bank Stocks are Falling Again on the Stock Exchange

Even after the takeover of Credit Suisse by UBS, the European banks have not come to rest. On the stock exchange, their papers are again losing significantly in value.

Persistent uncertainty has consequences: At the end of the first week after the takeover of the ailing Credit Suisse by UBS became known, prices on the Frankfurt Stock Exchange were again in the red. The MDax with the medium-sized stock market values fell on Friday, and the EuroStoxx 50 also fell.

Deutsche Bank shares fell particularly sharply by more than twelve percent, and Commerzbank also fell by more than eight percent.

Investors are unsure how to classify the monetary policy prospects and dangers of the banking turmoil. Before the weekend, therefore, many parted with their papers, the leading German index Dax fell below 15,000 points at times.

In the past few days, the Dax had recovered by up to around 840 points. After the initial low at the beginning of the week – the lowest level since the first week of January – caused by the emergency rescue by Credit Suisse, a rise to around 15,300 points followed. The Volkswagen shares were also negative in the Dax with a discount of three percent.

The emergency takeover of the major Swiss bank Credit Suisse by its competitor UBS and the difficulties of some smaller US institutions had also fueled concerns about the banks in the euro zone.

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