‘Relief Rally’ Weakens As Markets Study Spanish Deal
Filed by KOSU News in Business.
June 11, 2012
After rising sharply earlier today, European financial markets have come off their highs as investors “question the logistics of the $125 billion bailout of Spanish banks and wonder … whether Monday’s gains in financial markets were nothing but a relief rally,” Dow Jones Newswires reports.
The Financial Times says “uncertainty about how the bailout would affect Madrid’s funding profile crept into [Europe's bond] market.”
Still, U.S. stock futures are pointing toward gains on Wall Street, Bloomberg News says, as investors speculate “that the bailout of Spain’s banks will help ease the euro area’s debt crisis.”
And, “this Spanish deal will at least alleviate some concern as we wait another week for the Greek election,” Richard Sichel, chief investment officer at Philadelphia Trust Co., told Bloomberg.
On Morning Edition, NPR’s Philip Reeves said “no one’s in any doubt” that there are more problems ahead in the eurozone as it digs out of its financial crisis. [Copyright 2012 National Public Radio]