• Spanish Stock Market Suffers

    January 3, 2013 // Comments Off on Spanish Stock Market Suffers

    Moody s threatens to downgrade the note of Spanish sovereign debt. The IBEX-35 lost earnings from the previous months. All European stock markets to close July losses the worst July since 2002. The crisis of confidence in Europe derived from problems to bail out Greece and the threat of suspension of payments of U.S. have caused the Spanish stock market has dropped by 7.04% this month. The risk premium has closed the month at 354 basis points. The record is on July 18, when it closed at 366.

    Moody s rating agency threatened to downgrade the note of Spanish sovereign debt. The selective main, the IBEX-35 index, has fallen 10.359,9 points to the 9.630,70 and has eaten the profits accumulated in previous months. It has already lost 2.32% from the beginning of the year and this month was the annual minimum, 9.347,8 points. All European indexes closed July with losses, 8.68% in the case of the Italian FTSE MIB; 7,77% in the case of the French CAC 40; 2.95% for the German DAX and 2.19% for the FTSE 100 British. A true reflection of the Spanish stock market was in July a faithful reflection of the rapid contagion that may cause mistrust in situations of every State in the European Union. The voltage for the reduction in the note of Portugal and Ireland was reflected in the Spanish and Italian Park. The lack of capacity of Greece to attend the maturities of its debt triggered another crisis.

    After more than one week of rumors and large fluctuations in the bag and the risk premium, the 22nd the Eurogroup achieved an agreement that combined the conditions of all parties. The German requirement for involvement of the private sector caused that the qualification of lowering the rating of Greece on the brink of insolvency. By the way, Bankia and Banca Civica went out to bag and the Bank of Spain intervened the case of the Mediterranean at the request of its directors. The disagreement between Democrats and Republicans to raise the limit of indebtedness of EE UU, combined with the above factors and to European banking solvency tests ended up completing the worst July since 2002. That year, the company Worldcom shook the international stock market when spread that he had committed a multimillion-dollar fraud. Source of the news: the Spanish stock market suffers its worst month of July since 2002

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