European Indexes Rise 1.5%, New Record in Spanish Bad Loans

Arthi Gupta
19 Nov, 2012
New York City

The European indexes soared ahead of the euro zone finance ministers meeting in Brussels tomorrow. Euro zone finance ministers discuss offering more time to Greece to implement austerity measures. Spanish bad loans surge to a new record in September.

[R]1:30 PM Frankfurt – The European indexes soared ahead of the euro zone finance ministers meeting in Brussels tomorrow. Euro zone finance ministers discuss offering more time to Greece to implement austerity measures. Spanish bad loans surge to a new record in September.[/R]

The European indexes soared 1.5% ahead of the euro area finance ministers meeting in Brussels tomorrow.

Market indexes rallied after U.S. lawmakers made positive comments and showed willingness to compromise.

The divided leaders of the House and the Senate made conciliatory statements on Friday and showed readiness to settle policy differences and appear flexible to avoid the so called ‘fiscal cliff” that will kick in automatic spending cuts and tax increase of $600 billion.

Spanish banks'' bad loans soared to record levels in September, according to data released by the Bank of Spain today.

Total loans classified as high risk of not being repaid rose to 10.7% in September from 10.5% in August. The total value of these loans was €182.2 billion or $233 billion in September.

In Paris trading, the CAC-40 Index gained 51.20 or 1.5% to 3,392.53 and in Frankfurt the DAX Index edged higher 106.53 or 1.5% to 7,057.92.

The yields on Spain’s benchmark were at 5.88%. Italian 10-year yields were at 4.88%.

Euro zone construction fell, French leading economic index rose for a third straight month, Greek current account swung to a surplus and Italian industrial new orders declined more than estimated in September.