Forex Analysis & Reviews: Credit Suisse stock continues to sink
time 28.11.2022 02:57 PM
time Relevance up to, 29.11.2022 02:51 PM

While US stock indices are trying to find their daily lows, the stock price of the troubled Swiss lender Credit Suisse Group AG continues sinking. The company's shares dropped by 5.4% in premarket trading, hitting a fresh record low and putting its shares on track for their longest losing streak since 2011. The stock has fallen for ten straight days, losing as much as 27%. The news about massive investment outflows in the core wealth management business stunned investors, which triggered a wave of sell-offs.

This image is no longer relevant

Last week, the bank agreed to sell a large part of its business to Apollo Global Management Inc. The announcement was perceived negatively as no details had been disclosed.

A series of big losses and management chaos have undermined Credit Suisse's status as one of Europe's most prestigious lenders. Last month, the bank revealed a restructuring that included breaking up the investment bank, separating the advisory and capital markets unit. The company's management also announced thousands of job cuts.

In order to pay for the restructuring, the bank needs to raise at least 4 billion Swiss francs through selling shares to investors, including the Saudi National Bank. As I noted earlier, Credit Suisse's plans to raise capital are divided into two parts. The first one backed by 92% of shareholders suggests providing shares to new investors such as the Saudi National Bank through a private placement. In this case, the Saudi regulator will take a 9.9% stake in Credit Suisse, making it the bank's largest shareholder. The second part of the plan implies the issue of newly registered shares with pre-emptive rights to existing shareholders. This capital increase passed with 98% of the vote.

However, Credit Suisse's five-year credit default swaps jumped on Monday. Currently, they are approaching the record high posted in October.


Apple could reportedly fall short of its production target for its flagship iPhone 14 Pro models by nearly 6 million units worldwide due to Covid-related unrest at contract manufacturer Foxconn's Chinese factory. As a result, Apple lost 1.7% in premarket trading.

The stock of software company Taboola rose by 65.2% in premarket action after it announced a 30-year agreement with Yahoo, under which Taboola will power native ads on all Yahoo platforms.

Casino shares rallied in early trade after the Chinese government granted temporary licenses to a number of companies so that they can continue operating in Macau.

Wynn soared by 5.9%, MGM added 2.2%, Melco increased by 8%, and Las Vegas Sands advanced by 3.2%.

First Solar, a solar company, fell by 2.6% in premarket trading after a downgrade by JP Morgan to Neutral from Overweight.

From a technical point of view, the S&P 500 index came under pressure again. Now the principal task of buyers is to protect the support level of $4,000. As long as the asset is trading above this mark, demand for risky assets is expected to persist. Against this background, the trading instrument may advance and regain control of $4,038. A breakout of the $4,064 level will boost hopes for a further upward correction. In this case, the S&P 500 will have a chance of approaching the resistance level of $4,091. The most distant target will be $4,116. In case of a bearish move, buyers need to take the lead around the psychologically important mark of $4,000. If the price breaks through this range, the trading instrument will slide to $3,968 and probably head for the support level of $3,942.

Jakub Novak,
ผู้เชี่ยวชาญด้านการวิเคราะห์ของ InstaForex
© 2007-2023
Euro vs US Dollar
Select timeframe
Start trade
Start trade

บทวิเคราะห์ของทาง InstaForex จะทำให้คุณทราบถึงแนวโน้มของตลาด! ในการที่เป็นลูกค้าของทาง InstaForex นั้นคุณจะได้รับการบริการเพื่อการซื้อขายอย่างเต็มประสิทธิภาพอย่างมากมาย

  • Grand Choice
    Contest by
    InstaForex always strives to help you
    fulfill your biggest dreams.
  • Chancy Deposit
    ฝากเงินในบัญชีของคุณใน $3,000 และรับ $10000 ไปเพิ่ม!
    ใน มกราคม ทางเราได้ออก$10000 ภายในแคมเปญ Chancy Deposit !
    คว้าโอกาสที่จะชนะด้วยการฝากเงิน $3,000 ไปในบัญชีเทรด เมื่อทำตามเงื่อนไขนี้แล้ว คุณก็จะกลายเป็นผู้เข้าร่วมแคมเปญ
  • เทรดให้ดีแล้วคว้ารางวัล
    เติมเงินในบัญชีของคุณอย่างน้อย $500 สมัครเข้าร่วมการแข่งขัน และลุ้นรับรางวัลอุปกรณ์ติดต่อสื่อสารแบบพกพา
  • โบนัส 100%
    โอกาสพิเศษของคุณในการรับโบนัส 100% จากเงินฝากของคุณ
  • โบนัส 55%
    สมัครรับโบนัส 55% สำหรับการฝากทุกครั้ง
  • โบนัส 30%
    รับโบนัส 30% ทุกครั้งที่คุณเติมเงินในบัญชีของคุณ

Recommended Stories

SPX target 4,140 as long as it trades above 3,880.

SPX is on positive grounds today and after a short-term pull back towards 3,880 where a higher low was formed, price is ready to break to new short-term higher highs

Alexandros Yfantis 14:58 2023-01-26 UTC+2

US premarket on January 26: Investors believe in US stock market growth

The sharp growth of US tech stocks boosted market sentiment amid optimistic earnings forecasts from electric car maker Tesla Inc. Futures contracts on the Nasdaq 100 index rose by about

Jakub Novak 12:52 2023-01-26 UTC+2

Short-term technical analysis on Caterpillar stock price for January 25th, 2023.

CAT stock price is still in a bullish trend making higher highs and higher lows. Price is very close to providing a new higher high above $260.39. However

Alexandros Yfantis 13:57 2023-01-25 UTC+2

PG reaches our first target

PG stock price has reached and surpassed our first pull back target which was at the 38% Fibonacci retracement. Short-term trend is bearish as price has started making lower lows

Alexandros Yfantis 16:56 2023-01-24 UTC+2

Qatar Investment Authority is the second largest shareholder of Credit Suisse.

As it turned out, the Qatar Investment Authority rose to the position of the second-largest shareholder at the end of last year after tripling its holding in the struggling Swiss

Jakub Novak 15:18 2023-01-24 UTC+2

US premarket on January 24: US stock market fears corporate earnings reports

On Tuesday, European and US stock index futures are trading lower, struggling to hold on to the previous day's rally as investors prepare for important earnings and expense reports from

Jakub Novak 13:46 2023-01-24 UTC+2

SPX bullish scenarios

SPX is trading again above $4,000 as price has managed in two trading sessions to eradicate recent losses in SPX. Price made a high at 4,015 and then pulled back

Alexandros Yfantis 17:07 2023-01-23 UTC+2

US premarket on January 23, 2023: investors increasingly ignore Fed statements

US stock indexes have advanced slightly and are ready to extend Friday's rally. At the end of last week, several Fed policymakers presented arguments in favor of easing the regulator's

Jakub Novak 13:24 2023-01-23 UTC+2

Weekly analysis on the stock price of Ford Motors for week ending January 20th, 2023.

In our previous posts on Ford stock price we have succeeded in forecasting the decline towards $11 after the rejection at the $14.50 resistance area and we also forecasted

Alexandros Yfantis 17:04 2023-01-20 UTC+2

US premarket on January 20: the situation on the American stock market has stabilized

Although traders' concerns about hawkish central bank policies, a severe deterioration in economic statistics, and a decrease in US firm earnings haven't changed, US stock index futures stabilized on Friday

Jakub Novak 15:06 2023-01-20 UTC+2
ระบุคำถามไว้ได้ใน แชท.