Talk earlier in the day that Spain’s Valencia region would seek Government help to repay debt, put pressure on the Euro and brought on heavy selling for risk assets. Italian and Spanish bourses have been particularly hard hit trading well over 4% lower on the session. The Euro has made fresh 2 year lows and looks vulnerable in the sessions ahead. There is talk in the market of a note calling for negative deposit rates from the ECB by the fall.

 

 

Posted by Philip Ball | Sales and Trading