Credit Suisse slumps over 63 after emergency weekend takeover European bank shares fall over 5 in early trading
Government bonds and gold rally as investors seek safety

LONDON, March 20 Reuters European share markets opened sharply lower and government bonds and gold rallied in a rush for safety on Monday as the emergency weekend rescue of banking heavyweight Credit Suisse left the financial system facing widespread uncertainty.

Sunday had seen the most dramatic intervention since the global financial crisis with UBS buying Credit Suisse for 3 billion francs 3.2 billion in a shotgun wedding and the world39;s top central banks pledging daily dollar funding offerings.

Shocked European bank shares initially slumped over 5 as markets started trading. Credit Suisse39;s own shares fell over 63, those of its acquirer UBS dropped nearly 13, while the broader European STOXX 600 fell 1.6 before staging a modest recovery.

Credit Suisse is our Lehman moment in Europe but we recognise that and we are not going to make the same mistake, said Close Brothers Asset Management Chief Investment Officer Robert Alster of the speedy action by authorities over the weekend.

He said the European Central Bank, Bank of England and other central banks would be well aware of the next gazelles in the chain that the lions will be hunting other large banks with investment banking arms such as Deutsche Bank, BNP in France or Barclays in the UK and will step in with support if needed.

There…