By PNA / Xinhua and U.S. News Agency / Asian
The Spanish Ibex-35 reacted positively on Friday to the news that the EU bailout to Spain’s banks will go directly into the banks themselves with its highest daily rise in two years.
The result of the EU leaders’ summit meeting in Brussels, which also saw EU leaders’ agreement to inject 120 billion euros (about 150 billion U.S. dollars) to promote economic growth, provoked what the El Pais newspaper described as a “a wave of euphoria” on the Madrid market.
The Ibex-35 rose by 5.66 percent to pass the 7,000 point benchmark to end the day on 7,102.2 points, while Spain’s major banks all saw their shares gain in value, with Banco Santander shares climbing 6.41 percent and those of the BBVA rising by 8.25 percent.
Spain’s risk premium also fell below 500 points to end the week on 474 points, and at one point the risk premium had dropped by 72 points to fall to 470.
Meanwhile the pressure on the 10-year-bond relaxing to 6.329 percent as the market picked up, dropping significantly from the unsustainable level of 6.94 percent as of Thursday.