That is what we are going to find out in European trading later, after the bank said that it intends to borrow CHF 50 billion from the SNB to shore up liquidity here. Equities were battered yesterday but saw a bit of a late recovery, even if the S&P 500 and Dow did close lower. The Nasdaq actually recovered to close marginally higher in an impressive turnaround.
For now, S&P 500 futures are up 15 points, or 0.4%, in a slightly calmer mood. However, the bond market remains the key spot to watch and Treasury yields are still sitting lower as the jitters persist. 2-year yields are down to around 3.90% in what has been a wild week of volatility as you can see by the daily chart:
The SNB and FINMA should've probably done something sooner and we shall see if this statement alone will suffice in keeping markets from getting spooked and running up another squeeze in the session ahead.
