"The ECB should be preparing itself" for "the return of significant financial market tensions"
- Silvio Peruzzo, an economist at Royal Bank of Scotland Group Plc
Spanish "market conditions are not justified," said ECB Executive Board member Benoit Coeure on Wednesday. "Will the ECB intervene? We have an instrument, the securities markets program, which hasn't been used recently but it still exists."
The euro rose and Spanish bond yields declined after Coeure's comments.
"We expect a very significant intensification of the euro- area debt crisis to materialize this quarter as the market refocuses on the fundamentals and the fiscal challenges of each country," said Silvio Peruzzo, an economist at Royal Bank of Scotland Group Plc in London.
"The ECB should be preparing itself" for "the return of significant financial market tensions."
The Stoxx Europe 600 Index rose 0.74 per cent to 254.43. Germany's DAX Index gained 1.03 per cent and France's CAC 40 Index advanced 0.62 per cent. The U.K.'s FTSE 100 Index added 0.7 per cent to 5,634.74.
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