Jul 10
6
EU countries can potentially turn to an EU state back-up scheme
International Stock Market Report 6th July 2010
The Nikkei closed up 71.26 points at 9,338.04. The Topix gained 1.2% to close at 847.24. The Dax in Frankfurt dropped 18 points to close at 5,816, while the Cac in Paris dropped 16 points to close at 3,332. The Swiss market fell 32 points to close at 5,974.
EU countries that discover problem banks when they stress-test their lenders can potentially turn to an EU state back-up scheme. EU economy commissioner Olli Rehn said that now they could turn to “EU financial backstops” should the government exhaust national funds in helping a troubled lender. “In order to use these European financial stability mechanisms in the case of any country we would need to have a programme… focused in particular on the restructing of the banking sector and addressing the potential needs of a possible recapitalisation,” Rehn told lawmakers in the European parliament. “That is the strategy.” This is the first time the European Commission or executive has stated that countries struggling to recapitalise stricken banks could tap a €500bn (£414bn) scheme.
Due for release today is the UAD Cash Rate, UAD RBA Rate Statement, CAD Building Permits m/m and USD ISM Non-manufacturing PMI.
