St. James's Place News
EU bailout a welcome sight for Spanish eyes
Equity markets enjoyed a good week as news from China and expectations of an EU rescue of the Spanish banking sector saw renewed appetite for risk. Those expectations were confirmed with news at the weekend that Eurozone ministers had agreed to lend Spain up to €100bn to help its ailing banks, clearly demonstrating the resolve in Berlin and Brussels to take timely action to support those economies most important to the region. In doing so, perhaps the message to Greece, an economy smaller than the US state of Maryland, is to accept the austerity measures or prepare for a future on its own.
Also in this week's bulletin...
- China surprised global markets by cutting interest rates for the first time since 2008, showing its determination to stimulate growth, although concerns remain that Beijing is failing to implement the necessary structural reforms to its economy.
- The US Federal Reserve kept its powder dry on prospects for another round of quantitative easing.
- As the Greeks prepare to return to the voting booths this coming weekend, speculation continues as to what the election will mean for the country’s future in the Eurozone.
View this week's Market Bulletin (PDF), which contains thoughts and opinions of St. James’s Place and our range of investment managers on the key issues affecting investors.
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