Following that news about Credit Suisse, an update on UBS as well.
The bank, which was responsible for buying out its troubled Swiss rival in a $3bn deal, has seen its own shares fall by around 13%.
Shares of Credit Suisse down 60%
Shares of Credit Suisse have dived more than 60% after UBS agreed to buy the bank over the weekend.
It's worth pointing out analysts had expected a significant drop. Sunday's last-minute deal valued Credit Suisse at just over $3.15bn (£2.6bn), which was a fraction of its $8bn price tag on Friday.
Other European stock markets down
European stock markets are also down this morning.
The leading French and German indexes fell by around 1% in early trading.
UK market falls following Credit Suisse takeover
The London FTSE 100 benchmark index fell around 1% this morning as investors digested the events of last night.
Takeover welcomed by financial institutions
The Bank of England said it welcomed the “comprehensive set of actions” set out by the Swiss authorities. It added that the UK banking system was “safe and sound”.
Meanwhile, the Financial Conduct Authority (FCA) said on Sunday it was "minded to approve" the takeover to support financial stability as both UBS and Credit Suisse have operations in London.
Christine Lagarde, President of the European Central Bank, said she welcomed the "swift action" of the Swiss authorities.
Her comments were echoed in the US, where Treasury Secretary Janet Yellen and Federal Reserve Board chairman Jerome Powell both said the move supported "financial stability".
Central banks to boost flow of US dollars
Central banks have moved
globally to keep credit flowing following the unsettled period in the US
banking sector – and also the Credit Suisse merger.
Six central banks - including the Bank of England - announced
they would boost the flow of US dollars through the global financial system.
Instead of borrowing on the open market, British banks, for
example, will be able to go direct to the Bank of England - and it will borrow
from the US Federal Reserve.
It will work in the same way for banks in the eurozone, Canada,
Japan, Switzerland and the US.
The announcement of co-ordinated
action by six of the world's biggest central banks shows how serious is
the more general nervousness about the fragility of the global banking system,
the BBC's economics editor Faisal Islam says.
Credit Suisse was the victim of a crisis in the banking sector witnessed in the collapse of US-based Silicon Valley Bank.
This, and the collapse of Signature Bank, represented the biggest failures in the sector since 2008.
All this is happening against the backdrop of a much bigger, global change - the sharp rise in borrowing costs over the past year.
Central banks around the world, including the US Federal Reserve and the Bank of England, have been raising interest rates to try to slow the economy and ease the pressure pushing up prices.
Share prices in Asia fall
Share prices in Asia have fallen on the first day's trading after the emergency takeover of Credit Suisse.
In Hong Kong, the Hang Seng index has dropped by about 3%.
Meanwhile, the Nikkei in Tokyo is more than 1% down.
We'll have a sense of the reaction in London and other European stock markets at 08:00 GMT.
Sharp rise in global interest rates hit banking sector
Simon Jack
Business editor
Credit Suisse has become the latest and most important casualty of a crisis of confidence that has already seen the failure of two mid-sized US banks and an emergency industry whip-round for another.
But this is different. Switzerland's second biggest lender was considered one of the top 30 most important banks in the world - which is why this takeover was rushed through by the Swiss authorities.
Although the reasons for each failure differ slightly, the main factor has been a sharp rise in global interest rates which has hit the value of even safe investments that banks keep some of their money in. That has spooked investors and seen the share prices of all banks fall with those considered weakest hit hardest.
The financial authorities in the EU, US and UK are saying they support this deal, stressing that banks are strong and people's savings and deposits are safe.
The acid test as to whether this Swiss rescue has calmed nerves in the financial world will be when financial markets open on Monday - which is why it was so important this deal was done on Sunday night.
Markets react after Credit Suisse taken over by Swiss rival UBS
James FitzGerald
Live reporter
Good morning and thanks for joining us.
We’re following the market reaction to news that troubled bank Credit Suisse has been sold for $3bn (£2.5bn) to its Swiss rival UBS, in a government-backed deal.
Share prices in Asia have fallen on the first day's trading after the emergency takeover, announced on Sunday, which came after a weekend of emergency talks in Switzerland.
Credit Suisse is the most significant failure of a crisis of confidence in the banking sector – and was a bank deemed too important to fail.
The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.
With me in London is Nathan Williams – we’ll be keeping you updated on reaction to the deal.
Live Reporting
Edited by Heather Sharp
All times stated are UK
UBS down around 13%
Following that news about Credit Suisse, an update on UBS as well.
The bank, which was responsible for buying out its troubled Swiss rival in a $3bn deal, has seen its own shares fall by around 13%.
Shares of Credit Suisse down 60%
Shares of Credit Suisse have dived more than 60% after UBS agreed to buy the bank over the weekend.
It's worth pointing out analysts had expected a significant drop. Sunday's last-minute deal valued Credit Suisse at just over $3.15bn (£2.6bn), which was a fraction of its $8bn price tag on Friday.
Other European stock markets down
European stock markets are also down this morning.
The leading French and German indexes fell by around 1% in early trading.
UK market falls following Credit Suisse takeover
The London FTSE 100 benchmark index fell around 1% this morning as investors digested the events of last night.
Takeover welcomed by financial institutions
The Bank of England said it welcomed the “comprehensive set of actions” set out by the Swiss authorities. It added that the UK banking system was “safe and sound”.
Meanwhile, the Financial Conduct Authority (FCA) said on Sunday it was "minded to approve" the takeover to support financial stability as both UBS and Credit Suisse have operations in London.
Christine Lagarde, President of the European Central Bank, said she welcomed the "swift action" of the Swiss authorities.
Her comments were echoed in the US, where Treasury Secretary Janet Yellen and Federal Reserve Board chairman Jerome Powell both said the move supported "financial stability".
Central banks to boost flow of US dollars
Central banks have moved globally to keep credit flowing following the unsettled period in the US banking sector – and also the Credit Suisse merger.
Six central banks - including the Bank of England - announced they would boost the flow of US dollars through the global financial system.
Instead of borrowing on the open market, British banks, for example, will be able to go direct to the Bank of England - and it will borrow from the US Federal Reserve.
It will work in the same way for banks in the eurozone, Canada, Japan, Switzerland and the US.
The announcement of co-ordinated action by six of the world's biggest central banks shows how serious is the more general nervousness about the fragility of the global banking system, the BBC's economics editor Faisal Islam says.
Deal follows turbulence in banking sector
Credit Suisse was the victim of a crisis in the banking sector witnessed in the collapse of US-based Silicon Valley Bank.
This, and the collapse of Signature Bank, represented the biggest failures in the sector since 2008.
All this is happening against the backdrop of a much bigger, global change - the sharp rise in borrowing costs over the past year.
Central banks around the world, including the US Federal Reserve and the Bank of England, have been raising interest rates to try to slow the economy and ease the pressure pushing up prices.
Share prices in Asia fall
Share prices in Asia have fallen on the first day's trading after the emergency takeover of Credit Suisse.
In Hong Kong, the Hang Seng index has dropped by about 3%.
Meanwhile, the Nikkei in Tokyo is more than 1% down.
We'll have a sense of the reaction in London and other European stock markets at 08:00 GMT.
Sharp rise in global interest rates hit banking sector
Simon Jack
Business editor
Credit Suisse has become the latest and most important casualty of a crisis of confidence that has already seen the failure of two mid-sized US banks and an emergency industry whip-round for another.
But this is different. Switzerland's second biggest lender was considered one of the top 30 most important banks in the world - which is why this takeover was rushed through by the Swiss authorities.
Although the reasons for each failure differ slightly, the main factor has been a sharp rise in global interest rates which has hit the value of even safe investments that banks keep some of their money in. That has spooked investors and seen the share prices of all banks fall with those considered weakest hit hardest.
The financial authorities in the EU, US and UK are saying they support this deal, stressing that banks are strong and people's savings and deposits are safe.
The acid test as to whether this Swiss rescue has calmed nerves in the financial world will be when financial markets open on Monday - which is why it was so important this deal was done on Sunday night.
Markets react after Credit Suisse taken over by Swiss rival UBS
James FitzGerald
Live reporter
Good morning and thanks for joining us.
We’re following the market reaction to news that troubled bank Credit Suisse has been sold for $3bn (£2.5bn) to its Swiss rival UBS, in a government-backed deal.
Share prices in Asia have fallen on the first day's trading after the emergency takeover, announced on Sunday, which came after a weekend of emergency talks in Switzerland.
Credit Suisse is the most significant failure of a crisis of confidence in the banking sector – and was a bank deemed too important to fail.
The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy.
With me in London is Nathan Williams – we’ll be keeping you updated on reaction to the deal.