Spreadex Market Update

Agreement in principle



Given the low expectations of EU leaders being able to deliver an assertive change of direction in tackling the debt crisis, approval of direct aid for banks and agreement, in principle, of a Euro wide banking supervisor have been interpreted as positive moves to overcoming the nervousness in the market.

At the moment it is unclear whether the agreement of implementing a single banking supervisor includes the often spoke about bank deposit insurance scheme. Once the details are ironed out on this we could see another rally as this would assure investors and the general public that their money is safe the peripheral nations banks.

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