Over the weekend, it was announced that UBS has agreed to buy Credit Suisse for $3.2 billion, in a deal pushed by the Swiss government.
British banks are among the worst performers today, with HSBC and Standard Chartered falling 3.7% and 4.9%, respectively.
Energy majors are also weighing on the index, tracking a decline of more than 2% in oil prices.
Investors are now focusing on the Fed meeting starting tomorrow, with investors betting on a 0.25% rate hike or even no rate hikes at all. The Bank of England will also released its decision on rates this week.
Things to read today:
Holders of $17bn of Credit Suisse bonds wiped out under UBS takeover (Financial Times)
Credit Suisse’s Message to Clients: ‘No Need to Take Action Right Now’ (WSJ)
BOE Rate Decision Set to Cap Tumultuous Week for UK and Sunak (Bloomberg)