WHEW: French And Spanish Bond Auctions Go Smoothly, Banks Surge

Spain Election 2011 Popular Party

Photo: AP

So, the bidders in today’s Spanish and French bond auctions were unfazed by last Friday’s S&P downgrades of 9 European sovereigns.  Demand was healthy and yields were low.  And credit default swap spreads in both countries tightened, reflecting a decline in perceived credit risk.Overall, the major European stock markets haven’t really budged since before the auctions.

France’s CAC 40: up 0.6%

England’s FTSE 100: down 0.0%

Germany’s DAX: down 0.2%

Spain’s IBEX 35: up 0.4%

Italy’s FTSE-MIB: up 0.5%

It is however worth noting that the big European banks are going gangbusters.

Deutsche Bank: up 4.8%

Societe Generale:  up 5.7%

Banco Santander: up 1.8%

Barclays: up 4.3%

RBS: up 4.0%

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.