The hope that a $125 billion bailout of Spain and its banks will create a clean break with Europe’s months of sovereign trouble drove global markets higher. Among others, the Spanish market rose 5%.
To some extent because of pressure the bailout will take off of their own banks, Germany’s Dax rose 2.4% to 6,276. The German economy has started to deteriorate along with the rest of Europe. France’s CAC 40 was up 2% to 3,115. President Hollande did not get what he wanted out of the Spain deal, which was a precedent for stimulus.
The UK’s FTSE 100 rose 1.7% to 5,255. Leaders in the UK have said the troubled economies of Europe will hurt its export prospects. However, Spanish leaders said that the bailout will not keep it from a long period of economic trouble dragged to a large extent by 25% unemployment.
Most of Asia’s markets also rose on the Spain news. The Hang Seng rose 2.3% to 18,919.
The tests for Europe are actually not over. Greek elections occur on Sunday, and voters there could still reject austerity measures by voting for candidates who do not favor them.
Douglas A. McIntyre
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
