So, this is what shock and awe looks like.
Stock markets rocketed on Monday after European Union leaders announced a €720bn rescue package for the continent’s bond markets. Flashes, via Reuters:
RTRS-BRITAIN’S FTSE 100 UP 1.5 PCT AND FRANCE’S CAC 40 CLIMBS 2.4 PCT
RTRS-GERMANY’S DAX RISES 2 PCT
RTRS-EUROPE’S FTSEUROFIRST 300 EXTENDS GAINS, UP 2 PCT AT 986.99 POINTS
RTRS-PORTUGAL’S PSI 20 UP 7.6 PCT EARLY AND ITALY’S MIB UP 1.8 PCT
RTRS-EUROPE’S FTSEUROFIRST 300 EXTENDS GAINS, UP 3.1 PCT AT 997.13 POINTS
Spain’s Ibex 35 was delayed in its open due to strong demand for stocks, before starting Monday up 9 per cent.
Eurozone financials also opened Monday strongly higher. Via Reuters:
RTRS-DEUTSCHE BANK AG <DBKGn.DE> SOARS 8.9 PCT IN EARLY TRADE
RTRS-COMMERZBANK AG <CBKG.DE> SHARES RISE 6.5 PCT IN EARLY TRADE
RTRS-STOXX EUROPE 600 BANKING INDEX UP 3.5 PCT EARLY, CREDIT AGRICOLE UP 15 PCT, SOCIETE GENERALE UP 13 PCT
RTRS-STOXX EUROPE 600 BANK INDEX EXTENDS EARLY SURGE, UP 8.4 PCT
BBVA shares were up 15 per cent and Santander up 19 per cent as the Ibex opened.
Financials also led the FTSE 100, with Barclays stock up 12.8 per cent.
Meanwhile, in currencies, the euro continued its recovery:
In CDS land:
RTRS-GREEK 5-YEAR CREDIT DEFAULT SWAPS FALL TO 657 BPS VERSUS 915.5 BPS AT FRIDAY’S NEW YORK CLOSE – CMA DATAVISION
RTRS-PORTUGUESE 5-YEAR CREDIT DEFAULT SWAPS FALL TO 263 VERSUS 425 AT FRIDAY’S NEW YORK CLOSE – CMA DATAVISION
RTRS-SPANISH 5-YEAR CREDIT DEFAULT SWAPS FALL TO 157 VERSUS 238.6 AT FRIDAY’S NEW YORK CLOSE – CMA DATAVISION
RTRS-ITALIAN 5-YEAR CREDIT DEFAULT SWAPS FALL TO 145.5 VERSUS 225.5 AT FRIDAY’S NEW YORK CLOSE – CMA DATAVISION
RTRS-IRISH 5-YEAR CREDIT DEFAULT SWAPS FALL TO 171 VERSUS 257 AT FRIDAY’S NEW YORK CLOSE – CMA DATAVISION
Up, up, and away, in short.
And so it is time for this…
