The yield on the 10-year Spanish bond fell to its lowest point in six weeks. The Stoxx 600 has turned up and is on its way to recording its 11th week of gains.
An index of US economic indicators is likely to have rebound in July. Recent retail sales numbers climbed higher than expected and building permits came in at their highest level since August of 2008.
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German Chancellor Angela Merkel added a boost to Europe by saying that the European Central Bank’s (ECB) insistence on making any aid it gives conditional upon instituting measures to get spending under control fits well within Germany’s priorities.
All of these components are reducing investor anxiety and boosting confidence enough to induce buying. One of the ingredients in the 11-week run of the Stoxx is the fact that the ECB is getting ready to distribute the first part of its promised €100 billion to Spain.
Spain’s bonds outperformed the bonds of all its euro-area peers. Yields on the 10-year bond fell 46 basis points this week, giving yields their biggest decline
since the five days ended July 27.