Market Mover: Spain Rumored to Ask for AidAugust 3, 2012 @ 8:02 AM EST
Europe Update: Spain Rumored to Ask For Aid
European stock markets as well as stock futures in the U.S. shot higher overnight on rumors that the the Spanish government is going to hold an unscheduled press conference today in which it will ask for official support from the EFSF.
Recall that stocks dove yesterday when Spanish PM Rajoy said that his country would not make additional reforms and did not need assistance. The key here is if Spain does not officially ask for assistance then the EU/ECB plans cannot be implemented.
It is also worth noting that Spanish Prime Minister Rajoy is already scheduled to hold a press conference early this afternoon in Spain. His office said on Thursday that the PM "will give a press conference after the cabinet meeting to take stock of the political course" of his government, which has been in power since December.
Thus far this morning at the press conference, Rajoy has stated that “interest rates are rising at spectacular pace” and that his country must “solve liquidity problems.”
The PM also stated that “we will lose credibility if we don’t cut our deficit” adding “we must try to spend in line with income.”
However, so far at least there has been no official request for aid. Stay tuned.
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Other stories on Europe to review:
Draghi Fails to Deliver
ECB Leaves Rates Unchanged
Eurozone PMI's Confirm Ongoing Contraction
ECB To Do 'Whatever It Takes' to Save Euro
Spain Enters Recession in Q2
Industrial Production Down -2.8%
EU to Jumpstart Loans to Spanish Banks
Germany's Industrial Production Up in June
Bank of England Launches 3rd Round of QE
- EU Leaders Announce Measures To Ease Crisis
iShares Spain - Last 12 Month
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