Set as homepage  |  Add to Favorites
Navigation
News Center
Link
 
AAC Machine
AAC Plant
Probiotic Machine
News Center
 
Banking sector causes collapse of Spanish stocks
Date: 2010/7/1 Click: 1074
MADRID, June 29 (Xinhua) -- The Spanish stock market suffered this year's third major downfall on Tuesday (-5.45 percent) as a result of the banking sector's liquidity problems. Fears of a double dip world recession grew sharply ahead of U.S. jobs report to be released on Friday.

Once again, banks caused the Ibex-35 to sink under 9,200 points. Santander and BBVA shares fell by 6.8 and 7.2 percent respectively, whilst Bankinter saw the value of its shares reduced by 8 percent.

The Spanish financial sector was once more under close scrutiny by the international press on Tuesday when its liquidity problems were highlighted. According to the Financial Times, Spanish banks have been exerting pressure on the European Central Bank (ECB) ahead of Thursday's redemption of 442 billion euro (539.7 billion U.S. dollars) granted to European banks at an interest rate of 1 percent one year ago.

The London-based journal reported that Spanish banks accuse the ECB of "absurd" behavior if the European monetary authorities finally decide to terminate their emergency-cash policies. The one- year credits were a novel policy introduced by the ECB as an extraordinary support measure during the financial crisis.

Given the time-length of these loans, the Financial Times reports, the ECB will not renew them since they may distort markets and condition the ECB's monetary policies. The ECB is even more reluctant to renew the loan scheme in the current climate, with the ongoing sovereign debt crisis still unresolved.
Copyright © 2003-2013 Hopeland Chem-Tech Co., Ltd. All rights reserved.
Add.: Rm. B-1708, Taaffeite International Commerce Plaza, 4th Gaoxin Road, Xi'an City, Shaanxi Province, China
Postal Code: 710075
Cell phone: +86 135 7190 0119
Tel: +86 29 6296 0726
Fax: +86 29 6296 0725
Email: 85xianji@85xianji.com / icec0529@yahoo.com
Website: www.hopeland-cn.com


Web Stats: