Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

A landslide victory for the 'invisible candidate' in Algeria's Presidential polls

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014

Read more

THE WORLD THIS WEEK

The World This Week - 18 April 2014 (part 2)

Read more

MEDIAWATCH

Presidential adviser resigns over "shoe-shine scandal"

Read more

#THE 51%

Breaking stereotypes

Read more

#TECH 24

Galaxy S5 v. HTC One (M8): Which is the right one for you?

Read more

FRANCE IN FOCUS

New PM Manuel Valls outlines priorities

Read more

FASHION

Jean-Marc Loubier, bags and shoes.

Read more

ENCORE!

Hip-hop musician Beat Assailant on mixing the sounds of the city

Read more

  • Freed French journalists arrive home after Syria ordeal

    Read more

  • French journalist tells of release from captivity in Syria

    Read more

  • Divers begin pulling bodies from sunken South Korean ferry

    Read more

  • Syria’s Assad visits recaptured Christian town at Easter

    Read more

  • UK’s Hamilton cruises to victory at Chinese Grand Prix

    Read more

  • ‘Deadly clashes’ at Eastern Ukraine checkpoint

    Read more

  • In pictures: French kite festival takes flight

    Read more

  • Militants kill Algerian soldiers in deadly ambush

    Read more

  • Scores killed in South Sudan cattle raid

    Read more

  • PSG clinch fourth League Cup title after beating Lyon

    Read more

  • Le Pen’s National Front fail to woo Britain’s Eurosceptics

    Read more

  • VIDEO: Anti-Semitic leaflets in Eastern Ukraine condemned

    Read more

  • In pictures: Good Friday celebrated across the globe

    Read more

  • Bouteflika, the ghost president

    Read more

  • Does Valls’ upcoming Vatican trip violate French secularism?

    Read more

  • Ukraine separatists say ‘not bound’ by Geneva deal

    Read more

  • Abel Ferrara’s hotly awaited DSK film to premiere on web

    Read more

  • Obama signs bill to block controversial Iran diplomat from UN post

    Read more

  • Astronomers discover Earth-like planet that could support life

    Read more

  • Indian election: Votes for sale

    Read more

  • In pictures: Iranian woman pardons son’s killer at the gallows

    Read more

  • West African Ebola outbreak caused by new strain of virus

    Read more

Europe

Barroso lays out new eurozone debt plan

©

Video by FRANCE 24

Text by News Wires

Latest update : 2011-10-12

European Commission President Jose Manuel Barroso sent stocks markets higher Wednesday after laying out a series of measures to deal with the eurozone debt crisis, which included the creation of a permanent bailout fund.

AP – Stocks extended gains Wednesday as investors welcomed a broad new crisis plan from the European Commission president to help banks in Europe better withstand the effects of ongoing debt market turmoil.

Jose Manuel Barroso’s call for a stricter accounting of European banks’ exposure to sovereign debt and a call for banks to hold more capital propelled markets higher. Barroso also called for a permanent bailout fund, the European Stability Mechanism, to come into force already in mid-2012, one year ahead of schedule.

Investors also shrugged off Slovakia’s rejection of Europe’s bailout fund and focused on hopes that a workaround solution would be found before a summit of EU leaders next week.

Despite the rejection, markets are confident that the measures will pass by the end of the week after the country’s opposition reached a deal to approve changes to the bailout fund.

“Market participants do expect those measures will be passed soon, while comments from various European lawmakers have also spurred expectations of some recapitalization of Europe’s banks, which would act as a partial buffer against further market stress,” said Nick Bennenbroek an analyst at Wells Fargo Bank.

“For the near-term, markets appear willing to give European politicians the benefit of the doubt,” he added.

In Europe, the CAC-40 in France closed up 2.4 percent to 3,229.76, while Germany’s DAX rose 2.2 percent to 5,994.47. The FTSE 100 index of leading British shares ended 0.9 percent higher at 5,441.80.

The euro has also advanced strongly – it was trading 1.2 percent higher at $1.3785.

On Wall Street, the Dow Jones industrial average was up 1.1 percent at 11,546 while the broader Standard & Poor’s 500 index rose 1.5 percent to 1,214.

Market sentiment has seesawed in recent weeks between hope and despair that European leaders will present a solution to the debt crisis, which has threatened to bankrupt Greece and several major banks that hold its debt.

Greece’s debt inspectors have indicated that Athens would get the next installment of its bailout loans, even though it has fallen short on some of its promised reforms.

A Greek default would cause the value of its bonds held by European banks to plunge, hurting their balance sheets. U.S. banks would also be affected if Greece goes through a messy default, since they own Greek bonds and also have close ties to European banks.

Greece has been dependent since May last year on a €110 billion ($150 billion) bailout package from other eurozone countries and the International Monetary Fund

Earlier in Asia, Japan’s Nikkei 225 index dropped 0.4 percent to close at 8,738.90. But Hong Kong’s Hang Seng rose 1 percent to 18,329.46 and South Korea’s Kospi added 0.8 percent to 1,809.50. Benchmarks in Singapore, India, Indonesia and mainland China also swung into positive territory.

Oil prices remained shed earlier gains with the benchmark New York rate up only 9 cents at $85.90 a barrel.

Date created : 2011-10-12

  • EUROZONE

    Slovakia rejects expansion of eurozone rescue fund

    Read more

  • FINANCIAL CRISIS

    US history holds key to resolution of eurozone debt crisis, Nobel laureates say

    Read more

  • EUROZONE

    Fitch rating agency downgrades Italy and Spain

    Read more

Comments

COMMENT(S)