Eurozone stock indices subdued as Spain bank restructure cleared
City Index November 28, 2012 5:15 PM
<p>The eurozone’s major stock indices have lost ground following news of Spain’s bank streamlining.</p>
The eurozone's main stock indices are subdued in trading this morning (November 28th) on news Spain's bank restructuring has been signed off by Brussels.
Today, the European Commission cleared the way for four of the troubled Iberian nation's biggest banks – Bankia, Banco de Valencia, Catalunya Banc and NCG Banco – to be streamlined as part of the sector's major overhaul.
Spain has secured funding of up to €100 billion (£80 billion) from its eurozone partners in June of this year to help shore up its banks, which have been seriously damaged by the build-up of bad debt in a property bubble that burst in 2008.
The Commission said the restructuring of these financial institutions will enable them to "become viable in the long-term without continued state support".
At 11:30 GMT, the Madrid Ibex slipped by 0.8 per cent to an index value of 7793.6 points, while the pan-European DJ Eurostoxx index retreated by 0.4 per cent to 2532.2 points.
Learn about the markets and find spread betting tips at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.