Date: Tuesday 12 Jun 2012
-Stocks rise on hopes of US intervention
-Spanish bond yields soar
-TomTom up as Apple buys digital maps
Stoxx 600: -0.39%
Ibex 35: +0.09%
FTSE MIB: -0.70%
Most European markets gained on Tuesday following indications the US may ease monetary policy but the picture for the euro remained grim with Spanish 10-year bond yields rising.
The President of the Federal Reserve Bank of Chicago, Charles Evans, said today: “More asset purchases would be useful. More mortgage-backed security purchases would be good.”
Evans sits on the Federal Open Market Committee which sets monetary policy for the US, his comments have given investors hope some kind of massive US intervention is possible.
Certainly there is a sense something needs to be done because the yield on Spanish 10-year bonds rose a worrying 20 basis points or 0.2% today to 6.71%. It’s the clearest indication yet that the market doesn’t believe the €100bn set aside to rescue Spain's banking system will be enough.
The strongest sector on the Stoxx Europe 600 was telecommunications, rising 1.92%, the weakest was insurance which fell 0.45%.
Dutch firm TomTom rose after Apple announced it would be using its digital maps instead of Google’s while aggregates giant Lafarge rose 2% after presenting a new plan to boost profits.
By 17:41 in London the euro was up 0.02% against the dollar at $1.2485.
Futures contracts for front month delivery of Brent crude had dropped 2% by 17.30 in London to $97.25 per barrel.
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