Euro depreciates and the Price of Oil falls over uncertainty related to Spain’s Bailout

by Colonel on September 30, 2012

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“The euro and oil prices fell on Monday as uncertainty about Spain’s bailout and concerns over slumping demand due to a slowdown in global growth weighed on investor sentiment.

Several Asian markets are closed for holidays on Monday, including China, Hong Kong and South Korea, keeping activity subdued.

An independent audit on Friday showed Spanish banks will need a total of 59.3 billion euros ($76.3 billion) in extra capital to beef up their strength.

The result was in line with market expectations and was applauded by the European Commission, the European Central Bank and the International Monetary Fund, but uncertainty over when and whether Spain will seek external aid kept investors nervous.

Credit rating agency Moody’s was due to review Spain’s debt grade by the end of September. It currently has Spain on one notch above junk with a negative outlook.

” — Copyright 2012 Thomson Reuters

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