Broadgate: Market News 7/6
7 June 2012
European stocks were set to rise on Thursday, adding to the previous session’s sharp rally, as investors bet policymakers in Europe could soon unveil measures to prop up troubled Spanish banks and that further monetary stimulus may be on the way in the United States.
Financial spreadbetters expected Britain’s FTSE 100 to open 42 to 45 points higher, or as much as 0.8 percent, Germany’s DAX to open 51 to 53 points higher, or as much as 0.9 percent, and France’s CAC 40 to open 28 to 30 points higher, or as much as 1 percent.
On Wednesday, the Federal Reserve’s second-highest official laid out the case for the central bank to provide more support to the fragile economy. In a speech in Boston, Janet Yellen, the vice chair of the Fed, cited risks from ongoing housing problems, a weak jobs market and worsening financial conditions, and her comments suggest the Fed may be close to easing policy again.
On the euro zone front, even though Spain has not yet requested assistance and is resisting being placed under international supervision, Germany and European Union officials are urgently exploring ways to rescue the country’s banking sector, sources said.
Investors awaited Spain’s debt auction on Thursday, with the country set to tap the market for between 1 and 2 billion euros ($1.25-2.5 billion), split between three bonds, with results of the auction due around 0840 GMT.
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