Spain slides deeper into recession, Italian yields drop in bond auctions

Note: This section contains information in English only.
Source: Dukascopy Bank SA
The economic outlook for Spain "remains very difficult and vulnerable to significant downside risks"
- International Monetary Fund

Spanish economy slid deeper into recession in April-June quarter as a new round of austerity measures took effect on consumer demand. Gross domestic product contracted 0.4 per cent annual rate, compared to the pervious quarter, showed national statistics data on Monday.

The economic outlook for the nation "remains very difficult and vulnerable to significant downside risks," said the International Monetary Fund on Friday.

Also Monday, Italy placed 5.5 billion euros of debt at a lower cost than at previous auctions. Ten-year bond yields fell to 5.96 per cent from 6.19 per cent on June 28 and the five-year yield declined to 5.29 per cent from 5.84 per cent.

The Stoxx Europe 600 Index gained 1.59 per cent to 263.94. Germany's DAX Index rose 1.27 per cent and France's CAC 40 Index advanced 1.24 per cent.

© Dukascopy Bank SA

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