Swiss lender Credit Suisse faces a litmus test over its rights issue, just one several trials markets must work through between now and year-end even if some are already gearing up for festive cheer.
The moment of reckoning will come on Thursday when the rights issue closes, potentially leaving the underwriting banks with a big chunk of leftover shares in their books. And with the Federal Reserve, European Central Bank and Bank of England meeting in coming weeks, the drama isn’t over. Speculation about how quickly a peak in interest rates will come remains in focus.
Signs of this trend intensifying could exacerbate worries that higher prices may be more stubborn than expected despite the Fed’s all-out efforts. Economists are more confident, unanimously picking an increase. But some now say a move in December could be the last for this cycle.