Euro brink of collapsing but stock market is in denial
Posted By webmaster on October 24, 2011
The future of the euro hangs in the balance this weekend, but you would not know it from looking at stock markets.
Share prices rallied on Friday across Europe. In London the FTSE 100 closed at 5,488, its highest close since early August.
None of this looks like markets contemplating a collapse of the single currency or a fresh bout of bank bailouts.
The sang-froid derives significantly from the expectation that banks will not have to raise as much capital as feared as part of the eurozone rescue.
Estimates that they might need to find an extra 200 billion euros (£174 billion) or more have been discounted.
Bank shares were mixed over the week but on Friday the picture was almost universally upbeat, as they rose in Frankfurt, Paris, Milan and London. [read more…]