Investors endured another rollercoaster ride as they digested the emergency takeover of Credit Suisse.
In a brutal start to trading, stock markets across Europe tumbled as bank shares tanked.
The FTSE 100 index dropped around 130 points in early trading amid ongoing concerns about the health of the financial system.
Rollercoaster ride: The FTSE 100 dropped around 130 points in early trading amid ongoing concerns about the health of the financial system but went on to close the session up 0.9%
But markets rallied as the day went on and the Footsie closed the session up 0.9 per cent, or 68.45 points, at 7403.85. There were similar moves across Europe.
But Credit Suisse crashed 50.8 per cent after Swiss regulators brokered a £2.7billion takeover by UBS worth just 0.76 Swiss francs a share.
That was well below the closing price of 1.86 Swiss francs on Friday.
Shares in UBS also tumbled in early trading but ended the day up 1.3 per cent as investors concluded that it had snapped up its troubled rival for a bargain price.
Similar ups and downs were seen across Europe, with Deutsche Bank ending the session down 0.6 per cent after suffering an 11 per cent drop in early deals.
In London, Standard Chartered was the biggest loser, ending the day down 3 per cent and Barclays lost 2.3 per cent.
The Bank of England said yesterday that the UK’s financial system was ‘safe and sound’.
European Central Bank (ECB) head Christine Lagarde said it was ‘ready to respond as necessary’ to maintain stability in the eurozone.
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