LONDON: Europe’s main stock markets mostly rose yesterday on mounting speculation over a potential new international bailout deal for debt-ridden Spain, dealers said.
Madrid’s benchmark IBEX 35 index of leading shares jumped 2.60 percent to 8,230.7 points and Milan’s FTSE Mib gained 1.02 percent to 15,991 poi nts. Frankfurt’s DAX added 0.84 percent to 7,451.62 points, while in Paris the CAC 40 added 0.59 percent to 3,530.72 points. But London’s FTSE 100 dipped 0.03 percent to 5,852.62 points, help back by official data showing that British state borrowing hit a record high for August.
The European single currency edged up to $1.2992 from $1.2966 late in New York on Thursday, spending much of the day above $1.30.
“Speculation that EU officials are working on some form of reform package as well as a rescue package which could be unveiled as early next week, has helped buoy European markets, particularly Spanish and Italian equities,” said Michael Hewson, analyst at CMC Markets trading group.
The Financial Times yesterday said that EU authorities were helping Madrid craft an economic reform programme that will be announced next week, paving the way for a new rescue deal for the eurozone’s fourth-biggest economy.
The daily, which cited officials involved in the talks, added that the EU and Spanish government were focusing on measures required by international lenders as part of any new rescue package.
However an EU spokesman said that the Commission was working with the Spanish government on a national reform programme due to be announced next week. He insisted that this did not mean it was preparing a sovereign bailout.
But an EU source indicated that the reform programme would serve well in case pressure again mounts on Spain, which has indicated it is reluctant to ask for help if it doesn’t know what conditions will be attached.
Elsewhere, Asian stock markets attempted to rally as stimulus moves by the central banks of the US, Europe and Japan outweighed weak economic data. Hong Kong closed up 0.70 percent, Tokyo rose 0.25 percent and Seoul advanced 0.60 percent, while Shanghai eked out a slender gain of 0.09 percent.
US stocks moved higher following gains on European markets and Apple back over $700 as it released the iPhone 5. In midday trade, the Dow Jones Industrial Average was up 0.19 percent to 13,622.71 points. The S&P 500 rose 0.28 percent to 1,464.30 points, while Nasdaq added 0.41 percent to 3,189.07 points. AFP
