- US stock futures fell in Monday's premarket as worries about a bank crisis continued to build.
- Dow futures lost as much as 400 points and were down 150 points at last check.
US stock futures fell in premarket trading Monday as investors fretted about a developing bank crisis after $4.
$4 were down 150 points, or 0.5%, at 5:30 a.m. ET, after dropping as much as 400 points earlier in the morning. $4 fell 0.4%, while $4 were down 0.3%, both coming back from deeper losses.
The indicated losses come despite Swiss banking giant $4 agreeing to buy its longtime rival Credit Suisse in a deal worth 3 billion Swiss francs ($3.25 billion) on Sunday. The Swiss government forced through the deal, the latest bid by authorities worldwide to try to quell the crisis looming over banks.
The takeover came after Credit Suisse's shares plunged nearly 70% last week. The $4 has investors worried about contagion elsewhere, and big losses for US regional banks have weighed on stocks in Europe.
"With the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation," the Swiss National Bank said in a $4 published Sunday afternoon.
But the early signs Monday suggested that the rescue deal had failed to soothe investors fretting about a broader banking crisis.
UBS's Zurich-listed shares plunged 12% in early-morning trading, while Credit Suisse's plummeted 62%. France's $4 slipped just under 4%, while Spain's $4 fell nearly 3% after the opening bell.
There were also signs of further stress in the US regional banking system, with $4 shares falling another 14% in premarket trading after S&P cut its rating of the bank's bonds further into junk territory.
"It is not yet known exactly where more pain will emerge in the banking sector, but investors fear the problems are not yet over," Hargreaves Lansdown's head of money and markets Susannah Streeter said.
Here's what else is happening in markets:
- Europe's flagship $4 fell 0.7% in early-morning trading, with Paris's $4 down 0.4% and Frankfurt's $4 down 0.6%. London's $4 slipped 0.9%.
- In Asia, Tokyo's $4 closed 1.4% lower, while the $4 index fell 0.5%. Korea's $4 closed 0.7% lower, and Australia's $4 was down 1.4% for the day.
- US bond yields edged lower, with $4 down 13 basis points to just under 3.7% and $4 falling 10 basis points to 3.3%.
- Oil benchmarks traded lower, with $4 down 1.8% to under $72 a barrel and $4 falling 1.9% to just over $65 a barrel.
- The price of $4 jumped 1.3% to just under $2,000 per Troy ounce.
- Cryptocurrencies were mixed after UBS's rescue deal. $4 climbed 1.1% to over $28,000, but $4 fell 0.7% to under $1,800.