Spanish bank stress test results boost markets

FXstreet.com (Barcelona) - European markets rose on Monday, after Friday's uncertainty prior to the release of Spanish bank stress test results. The EUR/USD recovered the 1.2900 area, while the Spanish risk premium and the yields on benchmark 10-year bonds somewhat eased.

Later on Monday Spain's finance minister Luis de Guindos will hold a press conference together with European Union Economic and Monetary Affairs Commissioner Olli Rehn, during which they will talk about the budget cuts announced last Friday by the Spanish government. Ahead of their appearance the Spanish risk premium fell to 440 points and the 10-year bond yields declined below 6%.

Fitch contributed to the positive mood by announcing its decision to maintain the Spanish credit rating unchanged until 2013. The rating agency explained that this way it is giving the distressed country a chance for improvement.

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