Credit Suisse Lower Pre-Market
Shares in Credit Suisse are trading lower pre-market as traders react to news breaking today regarding leaked information on the bank’s involvement with criminals. A whistle-blower leaked information to several big media outlets regarding the bank’s current and historical client dealings with individuals and groups linked to drug trafficking, human trafficking, bribery and extortion. The data, which is otherwise covered by Swiss banking privacy laws, paints a very bad picture of Credit Suisse, which has come under fire previously over its involvement with certain clients. For investors, this type of publicity is likely to warrant a negative response in the coming days.
Credit Suisse has immediately responded to the leaked information saying that the vast majority of accounts named, were historical accounts which have since been closed. Credit Suisse also argued that many of the accounts were open during times when current banking practises and laws were not in place. Nevertheless, on the back of the Greensill Capital and Archipelago fund scandals of recent years, the news does little to inspire confidence among investors, coming just a week after a big Q4 earnings miss which was already weighing on shares.
Technical Views
Credit Suisse
Following the latest rejection above 9.83, CS shares have since turned lower and are now once again trading beneath the bear channel low. With both MACD and RSI turned lower, the near-term outlook remains bearish with focus on the 8.62 level as the next downside marker. A break below there will open the way for a test of 7.82 next.
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