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Europe's bourses boosted by German vote


Europe's bourses boosted by German vote


The German lower house of parliament’s approval of new powers for the euro zone’s rescue fund boosted the region’s stock markets on Thursday – with the exception of London where a sell off of mining companies shares pulled down the FTSE 100.

But investors are still looking to the politicians to provide a permanent and effective solution to the debt crisis.

Fidel Helmer of Hauck & Aufhäuser Bank, speaking on the floor of the Frankfurt Stock Exchange said: “Lets hope that this (vote) takes the volatility out of the markets, but we are still in the middle of a financial crisis. Despite the bailout fund, we cannot exclude the possibility of a ‘haircut’ in Greece (the government not paying back as much as it borrowed), and that would then get some banks in trouble.”

As well as concerns about Europe’s banks, the markets remain worried about the problem engulfing bigger euro zone economies like Italy and Spain.

The German vote did push up the value of the euro, but it is still down seven percent against the dollar in the last three months.

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