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The euro was 0.35% higher against the dollar at $1.0613 by midday in London after Wednesday’s steep losses triggered by the sell-off in European banks.

It was 0.4% higher against the British pound.

The Swiss franc also rose against the dollar as investors reacted to news that the Swiss National Bank will provide financial support to troubled Credit Suisse.

Markets will also look at the latest monetary policy announcement from the European Central Bank at 13.15, which will be followed by a press conference by ECB President Christine Lagarde.

A 50 basis point hike was widely expected, although recent volatility has prompted markets to reduce bets on the probability, and Lagarde’s remarks will be closely watched.

“If the ECB hike of 50 basis points comes in an environment where markets are easing concerns about the banking sector thanks to the support of the SNB, then this can actually be read as a signal of confidence on the part of Frankfurt regarding the banking sector in the eurozone system, and ultimately end could lift the euro,” said analysts at ING.

– Jenny Reid

Dan Scott, head of Vontobel Multi Asset, discusses the Credit Suisse crisis, saying the bank “is still one of the world’s largest asset managers.”

OBS Group, OneSavings Bank’s parent company, rose 9% in morning trade after posting positive annual results.

Underlying profit before tax rose 13% year-on-year to a record £591.1 million ($712.7 million), mainly due to growth in the loan book, the company’s report said.

Shares in pest control company Rentokil Initial rose after revenue grew following the company’s purchase of US rival Terminix. The company also raised its revenue and cost savings expectations for 2023, contributing to the 7% share price gain.

Shares in Credit Suisse rose as much as 30% when European markets opened, but gains eased to 18% around 9.15 London time.

Credit Suisse shares rose after the bank said it would borrow up to $54 million from the Swiss National Bank.

—Hannah Ward-Glenton

The weakest links in the banking sector are cracking, a strategist told CNBC’s “Squawk Box Europe” on Thursday.

Beat Wittmann, partner at Porta Advisors, discusses the crises facing Credit Suisse and Silicon Valley Bank, saying “now is really the time for politicians to restore confidence and liquidity in the system.”

European bank shares rose in early trade on news that Credit Suisse had secured a $54 billion lifeline from the Swiss National Bank.

Credit Suisse shares rose 30% before bringing the gain to 23% around 8.25am London time. UBS followed, up 4.9%, Commerzbank rose 3.9%, Santander rose 3.%, shares in FinecoBank rose 3.4% and Barclays rose 3.3%.

Bank shares as a whole rose by 1.8 per cent.

—Hannah Ward-Glenton

Shares in Credit Suisse rose 30% just after the European market opened after the Swiss National Bank said it would provide the bank with a liquidity backstop as regulators sought to allay fears of a crisis in the banking sector.

European markets opened higher on Thursday as regional investors breathed a sigh of relief after the Swiss National Bank said it would provide a liquidity backstop to beleaguered bank Credit Suisse.

The pan-European Stoxx 600 index opened 1% higher. Most sectors and major bourses opened positively with gains led by a rally in banking stocks, which rose 2.8%. Oil and gas and retail shares rose 1.6 per cent.

—Hannah Ward-Glenton

The chairman of Credit Suisse’s largest shareholder, Saudi National Bank, told CNBC’s Hadley Gamble that the recent market turmoil in the banking sector is “isolated” and stems from “a little bit of panic.”

“If you look at how the whole banking sector has gone down, unfortunately a lot of people were just looking for excuses … it’s panic, a little bit of panic,” Ammar Al Khudairy said on CNBC’s “Capital Connection.”

He added that Credit Suisse has not asked the Saudi National Bank for financial assistance.

“There have been no discussions with Credit Suisse about providing assistance,” he said. “I don’t know where the word ‘assistance’ came from, there have been no discussions whatsoever since October,” he said.

His comments come after Credit Suisse announced it will borrow up to 50 billion Swiss francs ($53.68 billion) from the Swiss National Bank to bolster liquidity and investor confidence after the stock fell on Wednesday.

– Jihye Lee

The Swiss franc continued to see volatility following developments around Credit Suisse – last strengthening 0.17% against the US dollar to offset earlier weakness after the lender announced it would borrow nearly $54 billion from the Swiss National Bank.

The Japanese yen also saw further strength to trade at 132.86 against the dollar. The Korean won strengthened 0.13% to 1,311.24 against the US dollar.

– Jihye Lee

Credit Suisse announced it will borrow up to 50 billion Swiss francs ($53.69 billion) from the Swiss National Bank under a secured credit facility and a short-term liquidity facility.

The moves will “support Credit Suisse’s core businesses and customers as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around customer needs,” the company said in a statement.

In addition, the bank is making a cash purchase offer in relation to ten US dollar-denominated senior debt certificates for a total consideration of up to $2.5 billion – as well as a separate offer for four euro-denominated senior debt certificates for up to a total of 500 million euros, the company states.

Read more here.

– Jihye Lee

European markets are set to rise on Thursday after a tumultuous trading session on Wednesday that saw stocks fall sharply.

Britain’s FTSE 100 index is expected to open 73 points higher at 7,405, Germany’s DAX 217 points higher at 14,947, France’s CAC up 118 points at 6,993 and Italy’s FTSE MIB up 443 points at 25,517, according to data from IG.

The European Central Bank’s latest monetary policy decision is in focus for the European markets on Thursday. The central bank is expected to announce a 50 basis point interest rate hike, as previously signaled by ECB President Christine Lagarde, as inflation remains high.

—Holly Ellyatt