From Asia to America, stocks experienced large gains this morning, as investors weighed Spain’s bailout agreement.
Spain on Saturday agreed to take as much as $125 billion in aid from the eurozone finance chiefs, in efforts to prop up its ailing banks. The recapitalization makes Spain less vulnerable from the rocky times ahead of Greece’s June 17 election. Spain has until mid-June to decide the exact amount it needs to recapitalize its banks.
“The Spanish banking sector is the weakness link in the eurozone contagion chain, so the deal seems a real signal of intent by eurozone policymakers—a pre-emptive firewall deployment ahead of the fast approaching Greek election,” Action Economics said in a note this morning.
After weeks of ever-growing worries about the situation in Europe, investors took advantage of the calm and moved toward into equities. Japan’s Nikkei 225 rose 2% to 8,624.90. London’s FTSE 100 index gained 0.6% to 5,467.30, and the Euro Stoxx 600 climbed 2.5% to 244.43.
The euro touched its highest level since May 23, before halving its gains to 0.5% at $1.2563.
In the United States, stock futures rose more as much as 1% before today’s open, suggesting stocks will extend last week’s strong rally that brought the best weekly performances for the Dow Jones industrial average and the S&P 500. Dow futures ticked up 50 points, while S&P 500 futures increased 4.2 points. Nasdaq composite futures rose 9.5 points.
Shares of Spanish banks traded in New York experienced broad gains. Banco Santander rallied 2.3% to $6.25. BBVA gained 2.8% to 6.64%.
Progress Energy increased 3.6% to $60.24 after saying its merger with Duke Energy should be completed by July 1 as hoped. Time Warner rose 3.7% to $36.53.
Meanwhile, Apple should hold an outsize role in today’s trading. CEO Tim Cook is expected to show new iPhone software and Mac computer models at the company’s annual software developers conference. Apple rose 1.2% to $587.27.
Investor sentiment toward stocks is unlikely to be unrestrained for long, though. This latest bailout package makes Spain the fourth European country to accept aid.
Spain on Saturday agreed to take as much as $125 billion in aid from the eurozone finance chiefs, in efforts to prop up its ailing banks. The recapitalization makes Spain less vulnerable from the rocky times ahead of Greece’s June 17 election. Spain has until mid-June to decide the exact amount it needs to recapitalize its banks.
“The Spanish banking sector is the weakness link in the eurozone contagion chain, so the deal seems a real signal of intent by eurozone policymakers—a pre-emptive firewall deployment ahead of the fast approaching Greek election,” Action Economics said in a note this morning.
After weeks of ever-growing worries about the situation in Europe, investors took advantage of the calm and moved toward into equities. Japan’s Nikkei 225 rose 2% to 8,624.90. London’s FTSE 100 index gained 0.6% to 5,467.30, and the Euro Stoxx 600 climbed 2.5% to 244.43.
The euro touched its highest level since May 23, before halving its gains to 0.5% at $1.2563.
In the United States, stock futures rose more as much as 1% before today’s open, suggesting stocks will extend last week’s strong rally that brought the best weekly performances for the Dow Jones industrial average and the S&P 500. Dow futures ticked up 50 points, while S&P 500 futures increased 4.2 points. Nasdaq composite futures rose 9.5 points.
Shares of Spanish banks traded in New York experienced broad gains. Banco Santander rallied 2.3% to $6.25. BBVA gained 2.8% to 6.64%.
Progress Energy increased 3.6% to $60.24 after saying its merger with Duke Energy should be completed by July 1 as hoped. Time Warner rose 3.7% to $36.53.
Meanwhile, Apple should hold an outsize role in today’s trading. CEO Tim Cook is expected to show new iPhone software and Mac computer models at the company’s annual software developers conference. Apple rose 1.2% to $587.27.
Investor sentiment toward stocks is unlikely to be unrestrained for long, though. This latest bailout package makes Spain the fourth European country to accept aid.
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