Global stock markets sank Monday after Swiss authorities arranged the takeover of troubled Credit Suisse amid fears of a global banking crisis ahead of a Federal Reserve meeting to decide on more possible interest rate hikes. Hong Kong's main index slid 2.7%. London, Frankfurt and Paris opened down more than 1%. Shanghai, Tokyo and Sydney also declined. Wall Street futures were off 1%. Oil prices plunged more than $2 per barrel. Swiss authorities on Sunday announced UBS would acquire its smaller rival as regulators try to ease fears about banks following the collapse of two U.S. lenders. Central banks announced coordinated efforts to stabilize lenders, including a facility to borrow U.S. dollars if necessary. Switzerland’s share benchmark was down 1.8%, while Credit Suisse’s shares plunged 63% and rival UBS, which is acquiring it, sank 14%. Also Read: UBS to buy Credit Suisse for nearly $3.25B to calm turmoil Investors worry banks are cracking under the strain of unexpectedly fast, large rate hikes over the past year to cool economic activity and inflation. Prices of bonds and other assets on their books fell, fueling unease about the industry’s financial health. “Investors are waiting to see where the dust settles on the banking saga before making any bold moves,” said Stephen Innes of SPI Asset Management in a report. In early trading, the FTSE 100 in London lost 1.6% to 7,220.62. Frankfurt's DAX fell 1.4% to 14,555.79 and the CAC 40 in Paris lost 1.2% to 6,842.36. On Wall Street, the future for the benchmark S&P 500 index was off 1%. That for the Dow Jones Industrial Average was down 1.2%. On Friday, the S&P 500 lost 1.1%. The Dow fell 1.2% and the Nasdaq composite lost 0.7%. In Asia, the Hang Seng in Hong Kong lost 2.7% to 18,879.20 after being down 3.3% at one point. The Nikkei 225 in Tokyo shed 1.4% to 26,945.67. The Shanghai Composite Index lost 0.5% to 3,234.91 after the Chinese central bank on Friday freed up more money for lending by reducing the amount of their deposits commercial lenders are required to hold in reserve. The Kospi in Seoul retreated 0.7% to 2,379.20 and Sydney’s S&P-ASX 200 lost 1.4% to 6,898.50. India's Sensex lost 1.3% to 57,241.45. New Zealand and Southeast Asian markets also declined. The Swiss government said UBS will acquire Credit Suisse for almost $3.25 billion after a plan for the troubled lender to borrow as much as $54 billion from Switzerland’s central bank failed to reassure investors and customers. U.S. regulators have also tried to calm fears over threats to banking systems. The Federal Reserve said cash-short banks had borrowed about $300 billion in the week up to Thursday. Separately, New York Community Bank agreed to buy part of failed Signature Bank in a $2.7 billion deal, the Federal Deposit Insurance Corp. said Sunday. The FDIC said $60 billion in Signature Bank’s loans will remain in receivership and are expected to be sold off in time. Investors worry about other lenders with shaky finances. Credit Suisse is among 30 institutions known as globally systemically important banks. Traders expect last week’s turmoil to push the Fed to limit a rate hike at this week's meeting to 0.25 percentage points. That would be the same as the previous increase and half the margin traders expected earlier. A survey released Friday by the University of Michigan showed inflation expectations among American consumers are falling. That matters to the Fed, which has said such expectations can feed into virtuous and vicious cycles. In energy markets, benchmark U.S. crude plunged $2.45 to $64.29 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $1.61 on Friday to $66.74. Brent crude, the price basis for international oil, lost $2.67 to $70.30 per barrel in London. It retreated $1.73 the previous session to $72.97. The dollar declined to 130.70 yen from Friday’s 131.67 yen. The euro retreated to $1.0647 from $1.0681.

Global stock markets were mixed Friday after Western governments promised new sanctions on Russia and President Vladimir Putin tried to prop up Moscow’s sinking ruble by threatening to require Europe to use it to pay for gas exports. London and Shanghai declined while Tokyo gained and Frankfurt was little-changed. Oil fell but stayed above $110 per barrel. Wall Street futures declined a day after gaining as the number of Americans applying for unemployment fell to a 52-year low. Western leaders meeting Thursday in Brussels promised more sanctions. President Joe Biden said they were meant to “increase the pain” on Putin, but the leaders released no details of possible new penalties. Putin threatened to require European customers that rely on Russia gas supplies to pay in rubles. That would increase demand for the Russian currency, pushing up an exchange rate that has slumped under sanctions. Read: Asian shares mostly lower as crude slides to $100 per barrel European leaders on Thursday rejected that possibility, potentially setting up a clash over energy supplies. Putin’s demand is a “cunning gambit” to frustrate sanctions while “elevating uncertainty for the West,” said Tan Boon Heng of Mizuho Bank in a report. In early trading, the FTSE 100 in London fell 0.2% to 7,454.92 and the DAX in Frankfurt was off less than 0.1% at 14,267.95. The CAC in Paris sank 0.1% to 6,550.00. On Wall Street, the future for the benchmark S&P 500 index gained 0.2%. That for the Dow Jones Industrial Average was up 0.1%. On Thursday, the S&P 500 gained 1.4% and the Dow added 1%. The Nasdaq composite rose 1.9%. In Asia, the Shanghai Composite Index lost 1.2% to 3,212.24 while the Nikkei 225 in Tokyo gained 0.1% to 28,149.84. The Hang Seng in Hong Kong fell 2.5% to 21,404.88. Read: Yet another 4-decade inflation high is expected for February The Kospi in Seoul was little-changed at 2,729.98 while Sydney’s S&P-ASX 200 gained 0.3% to 7,406.20. India’s Sensex lost 0.8% to 57,152.53. New Zealand, Singapore and Bangkok advanced while Jakarta declined. Russia’s Feb. 24 invasion of Ukraine sparked investor unease about the impact on prices of oil, gas, wheat and other commodities. Russia is the second-biggest crude exporter and both Moscow and Ukraine are major wheat suppliers. Markets already were on edge about plans by the Federal Reserve and other central banks to fight surging inflation by rolling back ultra-low interest rates and other stimulus that is pushing up stock prices. Oil prices are up more than 50% in 2022 due to worries about inflation and possible supply disruptions. Benchmark U.S. crude lost $2.02 to $110.32 per barrel in electronic trading on the New York Mercantile Exchange. The contract fell $2.59 on Thursday to $112.34. Brent crude, the price basis for international oils, sank $1.78 to $113.52 per barrel in London. It lost $2.57 the previous session to $119.03 a barrel. The dollar declined to 121.54 yen from Thursday’s 122.26 yen. The euro gained to $1.1021 from $1.0997.

Global shares were mostly higher after China reported strong manufacturing data, extending an overnight rally on Wall Street.