Spreadex Market Update

Doubts resurface



 With doubts resurfacing over the strength of the world economy yesterday, minds naturally have started to focus back on Europe and their debt situation.

Spanish yields have risen above 5.5%, and Italy’s yields broke through the 5% level as concerns over growth in Europe hit the market.

With countries such as Germany suffering in this economic climate, then how are countries such as Italy and Spain supposed to cope, especially when their levels of debt are as high as they are.

Investors are starting to wonder whether the two LTRO’s issued by the ECB are starting to wear off already.

Whatever politicians decide to do to stem growth fears in Europe, they should bear in mind that there is only so much stimulus you can give an economy before the effects become purely inflationary

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