European stock futures rose; Credit Suisse gets liquidity support

European stock markets are expected to open higher on Thursday as struggling bank Credit Suisse moves to consolidate its liquidity position ahead of the European Central Bank's policy-setting meeting.

At 03:00 ET (07:00 GMT), DAX futures in Germany were trading 1.4% higher, CAC 40 futures in France were up 0.4%, while FTSE 100 futures in United Kingdom increased 1%.

Credit Suisse (SIX:CSGN) announced late Wednesday plans to borrow up to CHF 50 billion ($1 = CHF 0.9297) from the Swiss National Bank, a move the Swiss bank describes as " decisive action to drastically enhance its liquidity".

The bank's shares plummeted to a record low on Wednesday as its main investor, the National Bank of Saudi Arabia, said it could not provide more capital to the bank, which has already struggled struggling with huge client cash outflows following a series of scandals in recent years.

This also follows the recent collapse of three US banks, most notably Silicon Valley Bank.

Difficulties in the global banking sector drew attention to the European Central Bank meeting later in the session.

The ECB had earlier signaled the possibility of a 50 basis point increase in interest rates. The banking turmoil is getting closer which could make policymakers more cautious.

The market now views a 25 basis point rally as the most likely outcome late Thursday, a significant re-pricing from the 50 basis point gain at the start of the week.

ECB President Christine Lagarde will no doubt be asked at the next press conference how the central bank can balance efforts to bring about price stability while preserving financial stability.

In corporate news, outside of the banking sector, investors may also keep an eye on Holcim (SIX:HOLN), after the Swiss building materials company said early Thursday that it has bought to HM Factory, a Polish concrete supplier for an undisclosed price.

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Expect quarterly earnings reports from the likes of Italian energy giant Enel (BIT:ENEI) and food delivery company Deliveroo (LON:ROO).

Oil prices traded higher on Thursday, bouncing back from 15-month lows as risk sentiment recovered after Credit Suisse was given liquid loans, easing fears of a full-blown banking crisis. will impede global economic activity.

At 03:00 ET, WTI crude oil futures traded 0.6% higher at $68.02 a barrel, while the Brent contract gained 0.7% to $74.22.

Both benchmarks have fallen about 10% this week, to their lowest levels since December 2021.

Additionally, gold futures fell 0.6% to $1,919.10 an ounce, while EUR/USD traded 0.3% higher at 1.0601.

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