Spreadex Market Update

19.07.12 Thursday Morning



Markets traded higher yesterday after improved US housing starts and some good corporate results boosted risk appetite. Ben Bernanke in part 2 of his semi-annual testimony reiterated a lot of Tuesday's gloomy assessment, highlighting that Europe was still a long way off finding a conclusive remedy for their debt situation. Spanish 10 year debt rose back towards the 7% mark ahead of a vote in Germany regarding aid to Spanish banks. This vote to approve funding for Spanish banks is crucial for Spains survival in order to help keep rates low and allow Spain to reach a sustainable position with its sovereign debt.

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