(Alliance News) - Stocks in London were called to open higher on Thursday, reversing some, though no where near all, of Wednesday's brutal sell-off.

The banking sector remains the market focus, with investor confidence in the sector on precarious footing. Coming amid the - so far - mini-crisis, a European Central Bank interest rate decision also is due around midday.

IG says futures indicate the FTSE 100 index of large-caps to open 81.8 points higher, 1.1%, at 7,426.25 on Thursday. The blue-chip index tumbled 292.66 points, or 3.8% at 7,344.45 on Wednesday. It was among the FTSE 100's worst-ever trading days.

Credit Suisse, which ignited Wednesday's sell-off, announced Thursday that it would borrow almost USD54 billion from the Swiss central bank to reinforce the group after a plunge in its share prices.

The disclosure came just hours after the Swiss National Bank said capital and liquidity levels at the lender were adequate for a "systemically important bank", even as it pledged to make liquidity available if needed.

In a statement, Credit Suisse said the central bank loan of up to CHF50 billion, or USD53.7 billion, would "support...core businesses and clients", adding it was also making buyback offers on about USD3 billion worth of debt.

"These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders," Chief Executive Ulrich Koerner said in the statement.

Credit Suisse, hit by a series of management scandals in recent years, saw its stock price tumble off a cliff Wednesday after major shareholder Saudi National Bank said it will not invest more in the group, citing regulatory constraints.

Shares in banking stocks across Europe, and New York as well, followed it lower.

Decent afternoon trading meant equities in New York avoided the size of decline seen in Europe. The Dow Jones Industrial Average closed down 0.9% on Wednesday and the S&P 500 down 0.7%. The Nasdaq Composite actually rose 0.1%.

US regional banks struggled again, however, with First Republic Bank among the worst of the lot, down 21%.

In Tokyo on Thursday, the Nikkei 225 ended down 0.8%, while the S&P/ASX 200 in Sydney fell 1.5%. In China, the Shanghai Composite was down 1.0% in late trade, while the Hang Seng in Hong Kong slumped 1.9%.

The pound was quoted at USD1.2071 early Thursday, up from USD1.2030 late Wednesday. The euro stood at USD1.0605, up from USD1.0538. Against the yen, the dollar was trading at JPY132.92, up from JPY132.43.

The pound and euro struggled in the wake of the European banking sector woes, though the safe-haven yen rallied.

It was a similar story for oil and gold. Crude prices retreated, while gold was boosted by its safe-haven appeal. This reversed somewhat on Thursday, however.

Brent oil was quoted at USD74.22 a barrel early Thursday in London, up from USD72.03 late Wednesday. Gold was quoted at USD1,917.26 an ounce, down from USD1,934.17.

In Thursday's UK corporate calendar, there are full-year results from Deliveroo, Rentokil, and Savills.

In the economic calendar, in addition to the ECB announcing its interest rate decision at 1315 GMT, there is also the weekly US unemployment insurance claims report at 1230 GMT.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.