As all eyes turn to Wall Street this morning in the wake of Standard & Poor’s downgrade of the U.S. credit rating, there was good news out of Europe.
A pledge from the European Central Bank to support the shaky bonds of Italy and Spain helped calm investor nerves in Europe on Monday, despite big losses in Asia, Associated Press is reporting.
Although Europe’s main markets in London, Paris, and Frankfurt were trading lower, albeit modestly, the exchanges in Milan and Madrid were posting sizable gains, AP reports. The borrowing costs for both Italy and Spain plunged to more manageable levels after the European Central Bank said it would buy the two countries’ bonds in order to help them avoid devastating defaults, AP writes.
Late Sunday, Europe’s central bank said it would “actively implement” its bond-buying program to calm investor concerns that Italy and Spain won’t be able to pay their debts, AP reports. Last week, worries over the two countries’ ability to keep tapping bond markets contributed to the turmoil in global markets.
Seeking to avert panic spreading across financial markets, the finance ministers and central bankers of the Group of 20 industrial and developing world also issued a joint statement Monday saying they were committed to taking all necessary measures to support financial stability and growth, AP writes.
Also in the AJC:
In other media:
Henry Unger, The Biz Beat
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