Monday, August 20, 2012

Europe close: Bundesbank draws a line in the sand

LONDON (SHARECAST) - -Bundesbank monthly bulletin criticises ECB bond plans
-Bundesbank bulletin says unified regulator no short-term solution to crisis
-German Finance Ministry says ECB plans theoretically problematic-Bbg
-ECB says wrong to speculate on shape of future interventions
-Greece again in the spotlight


FTSE-100: -0.17%
Dax-30: -0.10%
Cac-40: -0.22%
FTSE-Mibtel: -1.01%
Ibex 35: -1.21%
Stoxx 600: -0.49%

The main European indices finished today´s session slightly lower, more so in the case of periphery stocks, after the German Bundesbank -the country´s previous monetary authority- warned of the “substantial stability policy risks, not least,” which the European Central Bank´s bond buying proposals entail. Furthermore, the Bundesbank went on to indicate that such greater communitisation of risks should be channeled through national governments and parliaments.

Furthermore, the Buba -as it is known by some in the markets- stated that the creation of a single supervisory mechanism for financial institutions could be an important and positive step but that it is not apt as a short or medium-term solution for the currency area´s current sovereign debt and banking crisis. Read More