Tuesday, May 25, 2010

European equities struggle after Spain bank bailout

Stock market of Brussels

Image via Wikipedia

European stock markets struggled on Monday, with investor sentiment hit by renewed eurozone debt concerns following the weekend bailout of Spanish bank CajaSur, dealers said.

In morning trade, London rose by just 0.05 percent, Paris shed 0.51 percent, Frankfurt fell by 0.52 percent and Madrid by 0.79 percent.

"Investors remained nervous in the opening trading session to the week, with eurozone sovereign debt concerns still weighing on sentiment and keeping a leash on small market gains," said analyst Giles Watts at City Index.

"Trading remains choppy with most indices switching between small gains and losses in the opening session as investors tussle between uncertainty and appetite for risk."

The rescue of Spanish regional savings bank CajaSur, which was taken over by the Bank of Spain over the weekend, could cost up to 2.7 billion euros (3.4 billion dollars), business daily Expansion reported on Monday.

A Bank of Spain spokesman would not confirm this figure but he said the unlisted bank, formerly controlled by the Roman Catholic Church and headed by a priest, would receive an injection of "at least" 523 million euros.

European equities struggle after Spain bank bailout

Reblog this post [with Zemanta]