iBankCoin
Joined Nov 11, 2007
31,930 Blog Posts

European Markets and U.S. Futures Celebrate the Bailout of Portugal’s Largest Bank

“(Reuters) – European stocks rose on Monday and bond yields fell on a banking sector rebound after Portugal prevented the collapse of one of its biggest lenders and shares in the continent’s largest bank jumped in the wake of its latest earnings report.

This dovetailed with easing fears of higher U.S. interest rates following Friday’s U.S. employment report, and eclipsed growing geopolitical concerns over the Middle East and the effect of Western trade sanctions on Russia.

Lisbon on Sunday announced a near 5 billion-euro rescue of the country’s largest listed bank, Banco Espirito Santo, preventing it from collapsing and potentially destabilizing the banking sector regionwide.

“The market’s initial reaction is that it’s pretty reassuring to see Portugal moving quickly to rescue BES. Overall it eases systemic fears that had resurfaced last week,” Saxo Bank sales trader Andrea Tueni said.

On Monday, HSBC reported a larger-than-expected drop in profits, but investors looked instead to the bank’s attractive dividend yield and scooped up the shares, lifting them to a three-month high….”

Full article

If you enjoy the content at iBankCoin, please follow us on Twitter