A new found sense of optimism has hit the international markets, after Spain sought assistance for its ailing banks. Asians stocks and the euro both saw an upsurge and China’s exports jumped in May from a year earlier.
As analysts at Credit Agricole CIB in Hong Kong said,
‘‘Market sentiment has improved on the back of the announcement of Spanish bank aid and a less worrying set of numbers out of China over the weekend.’’
Unfortunately, however, most assume that the respite is a very short lived one. As Tom Kaan of Louis Capital Markets in Hong Kong said, ‘
‘I think it’s only a brief respite for the markets. The 100 billion bailout is hopefully setting up a firewall against a much worse deterioration. Here we are, saving the banks. But what is next?’’
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