Credit Suisse secures 54 bln lifeline, shares up 19.8
ECB rate hike plans clouded by banking turmoil
STOXX 600 flat, banks add 1.3

March 16 Reuters European shares struggled for direction on Thursday, with caution prevailing ahead of a closely watched European Central Bank rate decision, while beleaguered lender Credit Suisse jumped after a lifeline from the Swiss National Bank allayed some fears of a global banking crisis.

The STOXX 600 was flat by 0925 GMT after rising as much as 1.6 in early trading.

The index fell nearly 3.8 so far this week as the collapse of U.S. lender Silicon Valley Bank last week raised concerns about stress in the global banking sector and sent bank shares into a tailspin.

The banks sector index added 1.3, after logging its steepest oneday drop in more than a year in the previous session.

Credit Suisse, which is at the centre of Europe39;s banking rout, recovered 19.8 after saying it would borrow up to 54 billion from the Swiss central bank to shore up liquidity and investor confidence.

Shares of the Zurichbased lender had tumbled 24 to a record low on Wednesday.

There appears to be a lifeline for the beleaguered lender, which should prevent another Lehman moment, much to the relief of markets and Credit Suisse39;s investors, said Victoria Scholar, head of investment at interactive investor.

The bank which has been around since 1856 has been instrumental in supporting growth of the Swiss economy with the SNB clearly judging that the…